Robbins Arroyo LLP: Kitov Pharmaceuticals Holdings Ltd. (KTOV) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Kitov Pharmaceuticals Holdings Ltd. (NASDAQCM: KTOV) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Kitov American Depositary Receipts (“ADRs”) pursuant to the company’s initial public offering (“IPO”) on November 20, 2015, and/or on the open market between November 20, 2015 and February 3, 2017, for alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 by Kitov’s officers and directors. Kitov, through its subsidiary, Kitov Pharmaceuticals Ltd., operates as a clinical development stage biopharmaceutical company. The company’s lead drug candidate is known as KIT-302, a fixed dosage combination product based on the generic drugs celecoxib and amlodipine besylate.
Kitov Accused of Misleading Investors About Its Drug Trials
According to the complaint, on November 20, 2015, Kitov completed its IPO, selling 3.41 million ADRs and raising net proceeds of approximately $13.2 million. That same day, Kitov filed its IPO registration statement with the U.S. Securities and Exchange Commission in which it touted the medical and economic advantages KIT-302, which was in an advanced stage of its Phase III clinical study. The company further stated that it believed that its drugs have several commercial advantages, such as “reduced development time compared to the development time of new chemical entities … and decreased risk factors in the development process.” Kitov subsequently revealed that the primary efficacy endpoint of the Phase III trial, which was to show that a combination of the two components of KIT-302 in patient Group One lowers daytime systolic blood pressure by at least 50% of the reduction in blood pressure achieved by patients in patient Group Two, was successfully achieved. However, the complaint alleges that Kitov officials failed to disclose that the company and its Chief Executive Officer (“CEO”), Isaac Israel, published misleading information concerning the conduct of the clinical trials for KIT-302.
On February 6, 2017, the Israeli publication Calcalist reported that Kitov’s CEO had been detained and questioned by the Israeli Securities Authority (“ISA”) on suspicion of publishing misleading information in connection with a clinical trial of KIT-302. On this news, Kitov’s ADR price fell $0.33, or 11.46%, to close at $2.55 on February 6, 2017. Then, on February 7, 2017, the NASDAQ halted trading of Kitov’s ADRs. Kitov issued a news release that same day that announced that the ISA had “begun a formal investigation into the Company’s public disclosures around its lead drug candidate, KIT-302.”
Kitov 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.
Send This Post