Robbins Arroyo LLP: Keryx Biopharmaceuticals, Inc. (KERX) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Keryx Biopharmaceuticals, Inc. (NASDAQCM: KERX) in the U.S. District Court for the District of Massachusetts. The complaint is brought on behalf of all purchasers of Keryx securities between September 2, 2013 and August 1, 2016, for alleged violations of the Securities Exchange Act of 1934 by Keryx’s officers and directors. Keryx is a biopharmaceutical company that focuses on providing therapies for patients with renal disease in the United States. Its product, Auryxia, is an oral, absorbable iron-based compound designed to control serum phosphorous levels in patients with chronic kidney disease on dialysis.
Keryx Accused of Concealing Production Difficulties Surrounding Its Drug Product
According to the complaint, throughout the class period, Keryx officials schemed to mislead shareholders into believing that the company would contract with multiple manufacturers to produce Auryxia. For example, Keryx repeatedly referenced “third party manufacturers” and “contract manufacturers” in its public filings. In so doing, the company allegedly concealed the true risks associated with the manufacturing and supply of Auryxia because Keryx contracted with only a single manufacturer to produce its only marketed drug.
The complaint further alleges that Keryx officials failed to disclose: (1) that the company lacked adequate inventory controls; (2) that at some point during the class period, Keryx officials became aware but did not disclose that its contract manufacturer was experiencing production difficulties; and (3) that these production difficulties would deplete Keryx’s Auryxia inventory. On August 1, 2016, Keryx revealed that the company would halt the distribution of Auryxia until at least October 2016 due to production difficulties on the part of its only contract manufacturer, and that Keryx was withdrawing its financial guidance for 2016. On this news, Keryx stock fell $2.64 per share, or 35.8%, to close at $4.72 per share on August 1, 2016.
Keryx Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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