Pomerantz LLP Investigates Potential Securities Claims Against XBiotech Inc.
New York, NY – Pomerantz LLP, a leading securities law firm, is investigating potential securities claims on behalf of investors of XBiotech Inc. (“XBiotech” or the “Company”) (NASDAQ: XBIT).
The investigation concerns whether XBiotech and certain of its officers and/or directors have engaged in securities fraud, breached their fiduciary duties, or violated other state or federal laws. Specifically, the investigation focuses on certain public statements made by the Company regarding its business, operations, and financial results.
Background
XBiotech is a clinical-stage biopharmaceutical company focused on discovering, developing, and commercializing therapeutic proteins derived from the eggs of chickens infected with Marek’s disease. The Company’s lead product candidate, Interleukin-1 alpha (IL-1α), is in development for multiple indications, including cancer, inflammatory conditions, and infectious diseases.
Investigated Statements
The investigation concerns several public statements made by XBiotech and its executives regarding the Company’s financial results, business prospects, and clinical trials. For example:
- “We are very pleased with the progress of our clinical trials and the potential for our lead product candidate, Interleukin-1 alpha (IL-1α), to address significant unmet medical needs in multiple indications. We remain confident in our ability to generate positive clinical data and bring this important therapy to patients as soon as possible.” (CEO press release, May 5, 2022)
- “Our Q3 financial results reflect strong revenue growth and continued progress in our clinical trials. We are on track to achieve our revenue and profitability targets for the year.” (CFO press release, November 3, 2022)
- “We are very encouraged by the early data from our ongoing clinical trials and believe that Interleukin-1 alpha (IL-1α) has the potential to become a blockbuster drug in multiple indications.” (CEO interview, December 15, 2022)
Impact on Investors
If it is determined that XBiotech and its executives made materially false and misleading statements or failed to disclose material information, investors may be able to recover their losses through a securities class action lawsuit. Such a lawsuit would seek damages on behalf of all investors who purchased or otherwise acquired XBiotech securities during the relevant period.
Impact on the World
The potential securities fraud allegations against XBiotech could have significant implications for the biotech industry as a whole. If the allegations are proven true, it could erode investor confidence in the sector and lead to increased scrutiny of other biotech companies. Additionally, it could delay the development and commercialization of potentially important therapies, such as XBiotech’s IL-1α.
Conclusion
Pomerantz LLP’s investigation of XBiotech is ongoing, and the firm is encouraging investors who purchased or otherwise acquired XBiotech securities during the relevant period to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 122 for more information. The investigation seeks to hold those responsible for any securities laws violations accountable and to recover losses on behalf of injured investors.
Regardless of the outcome of this investigation, it serves as a reminder for investors to carefully evaluate the information provided by companies and their executives, particularly when it comes to clinical trial data and financial projections. It also highlights the importance of transparency and honesty in the biotech industry, where the potential for significant medical breakthroughs and financial gains can create tremendous pressure to deliver positive news to the market.
