Levi & Korsinsky Investigates Allarity Therapeutics, Inc. for Potential Securities Law Violations
New York, NY – March 19, 2025
Levi & Korsinsky, a leading securities law firm, announced today that it has commenced an investigation of Allarity Therapeutics, Inc. (NASDAQ: ALLR) for potential violations of federal securities laws. The investigation focuses on Allarity’s July 22, 2024 filing of a current report on Form 8-K with the Securities and Exchange Commission (SEC).
Background
Allarity Therapeutics, Inc. is a clinical-stage biotechnology company focused on the development of novel therapeutics for the treatment of cancer and inflammatory diseases. The company’s lead product candidate, AL101, is a CD47 blocker, and it is currently being evaluated in a Phase 1/2 clinical trial for the treatment of solid tumors.
Form 8-K Filing
In the July 22, 2024 Form 8-K filing, Allarity disclosed that the company’s Chief Medical Officer (CMO) had resigned effective July 15, 2024. The filing stated that the CMO’s departure was due to “personal reasons” and that the company had initiated a search for a successor. However, the filing did not mention any potential impact on the company’s clinical trials or regulatory plans.
Investigation Details
Levi & Korsinsky is investigating whether Allarity and certain of its officers or directors may have violated securities laws, including whether the July 22, 2024 Form 8-K filing and other public statements regarding the CMO’s departure were misleading or inadequately disclosed material information.
Impact on Investors
The departure of a CMO can have significant implications for a biotech company, particularly one in the clinical stage like Allarity. The CMO is responsible for overseeing the clinical development of the company’s product candidates, and their departure can impact the timing, cost, and success of clinical trials. Investors may have relied on Allarity’s public statements regarding the CMO’s departure and its impact on the company’s clinical trials and regulatory plans. If it is determined that these statements were misleading or inadequately disclosed material information, Allarity and its officers or directors may be liable for damages.
Impact on the World
The investigation of Allarity Therapeutics, Inc. by Levi & Korsinsky may have broader implications for the biotech industry as a whole. It highlights the importance of accurate and timely disclosures by publicly traded companies, particularly in the clinical-stage sector where the success or failure of a single product candidate can have significant impacts on shareholder value. Transparency and clear communication are essential for maintaining investor confidence and ensuring that the market remains efficient.
Conclusion
The investigation by Levi & Korsinsky into Allarity Therapeutics, Inc. for potential securities law violations related to the company’s July 22, 2024 Form 8-K filing is an important reminder of the importance of accurate and timely disclosures by publicly traded companies. The departure of a CMO can have significant implications for a biotech company, and investors rely on public statements regarding such events to make informed investment decisions. If it is determined that Allarity and its officers or directors misled investors with regard to the CMO’s departure and its impact on the company’s clinical trials and regulatory plans, they may be liable for damages. The investigation also underscores the importance of transparency and clear communication in the biotech industry, where the success or failure of a single product candidate can have significant impacts on shareholder value.
- Levi & Korsinsky announces investigation of Allarity Therapeutics, Inc.
- Investigation focuses on July 22, 2024 Form 8-K filing.
- Form 8-K filing did not adequately disclose potential impact of CMO departure.
- Impact on investors: potential misleading statements, liability for damages.
- Impact on the world: importance of accurate and timely disclosures, transparency in biotech industry.
