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Investor Rights Advocacy Escalates: Pomerantz LLP Sues Checkpoint Therapeutics

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Lauren Miller

April 6, 2024 - 01:12 am

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Legal Battlegrounds Heat Up as Pomerantz LLP Champions Investor Rights Against Checkpoint Therapeutics

NEW YORK, April 5, 2024 - Pomerantz LLP has taken a bold step forward in representing the interests of investors by filing a class action lawsuit against Checkpoint Therapeutics, Inc. and select high-ranking officers. The prestigious law firm made an announcement detailing how the lawsuit was lodged in the United States District Court for the Southern District of New York, under the docket number 24-cv-02613. This class action litigation encompasses a group comprising individuals and entities, excluding the Defendants, who had purchased or otherwise obtained securities from Checkpoint during the timeframe from March 10, 2021, to December 15, 2023, inclusively known as the "Class Period". The lawsuit seeks restitution for damages incurred due to the Defendants' alleged violations of federal securities laws, specifically under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.

Urgent Call to Action for Checkpoint Shareholders

Shareholders who have invested in Checkpoint securities during the Class Period are presented with a deadline until June 4, 2024, to petition the Court for the appointment as Lead Plaintiff of the class. Those seeking to undertake action or simply requiring further details can access the Complaint at www.pomerantzlaw.com. Danielle Peyton from Pomerantz LLP is available for contact about this case and can be reached at [email protected] or through a toll-free call at 646-581-9980, Ext. 7980. It’s advisable for email correspondences to include a mailing address, telephone number, and the amount of shares purchased for thorough assistance.

More Information:

If you seek information about joining the class action, you can click here.

Inside Checkpoint's Operations: A Glimpse into the Company

Checkpoint operates as a clinical-stage biopharmaceutical pioneer, concentrating their efforts on procuring, cultivating, and commercializing innovative treatments for patients with solid tumor cancers in the USA and beyond. The core of Checkpoint’s operations relies on third-party contract manufacturers who are instrumental in undertaking significant responsibilities ranging from preclinical to clinical studies and trials, and even extending to cover commercial and pre-commercial manufacturing processes.

Checkpoint’s lead product in the development pipeline is cosibelimab, an antibody designed to combat selected types of recurrent or metastatic cancers. The Company reached a significant milestone in January 2023, when it tabled a Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA), seeking approval for cosibelimab as a treatment option for patients living with metastatic cutaneous squamous cell carcinoma (cSCC) or locally advanced cSCC who are not eligible for curative surgery or radiation.

Allegations of Misleading Information by Checkpoint

The legal complaint levies serious accusations against Checkpoint, suggesting that throughout the Class Period, the Defendants were involved in issuing materially false and misleading statements concerning the Company's operations and adherence to regulatory compliance. In particular, it is alleged that Checkpoint misrepresented the level of oversight and the establishment of adequate production standards and controls over its third-party manufacturers. It further claims that issues regarding the Company's third-party contract manufacturing organization (CMO) for cosibelimab were undeclared, thus diminishing the probability of the FDA's approval of cosibelimab BLA in its initially submitted form. As such, the optimistic portrayal of the manufacturing and regulatory potential of cosibelimab was overstated, leading to the Company's public communications being substantially false and misleading at crucial times.

FDA's Response and Impact on Checkpoint's Stock Value

On December 18, 2023, news broke out that the FDA had not granted approval for the cosibelimab BLA, citing issues identified during an inspection at Checkpoint's third-party CMO. The agency specified that these findings must be rectified in a follow-up submission. Following this announcement, Checkpoint's stock experienced a precipitous drop, falling by $1.49 per share or a staggering 44.88%, closing the day at a mere $1.83 per share.

Pomerantz LLP: A Titan in Securities Class Litigation

Pomerantz LLP is a firm that has solidified its reputation as a front-runner in the domain of corporate, securities, and antitrust class litigation. Founded by the legendary Abraham L. Pomerantz, who is often referred to as the dean of the class action bar, Pomerantz was a pioneer in the realm of securities class actions. Decades have elapsed since its inception, but Pomerantz LLP continues to embody the spirit of its founder by championing the cause of individuals who have fallen victim to securities deception, breaches of fiduciary duties, and corporate malpractice. The firm has been instrumental in recouping multibillion-dollar sums as compensatory damages for class members over its illustrious 85-year tenure. Refer to their website at www.pomlaw.com for further information.

Notice:

It should be noted that the legal advertising conducted by Pomerantz LLP serves as an informational conduit and does not by itself predict or guarantee future outcomes, as previous case results do not ensure identical resolutions in new cases.

For further contact or inquiries, individuals are directed towards Danielle Peyton at Pomerantz LLP, accessible via email at [email protected] or by calling 646-581-9980, ext. 7980.

SOURCE: Pomerantz LLP

Investor Advocacy and the Path Forward

The legal challenge presented by Pomerantz LLP against Checkpoint Therapeutics represents a clarion call to action for the investors harmed during the stated period. The claims put forth suggest serious implications regarding the integrity of the information disseminated by Checkpoint and underline the importance of rigorous oversight in the bio-pharmaceutical industry, particularly where investments and health intersect. The legal journey is likely to unfold over time, with the appointed Lead Plaintiff playing a critical role in the pursuit of justice and reparation for the affected shareholders.

Understanding Your Legal Rights as a Shareholder

If you are an investor who believes you have been impacted by the actions or misstatements of Checkpoint Therapeutics, it's essential to understand the scope of your legal rights and the mechanisms available for seeking restitution. The class action lawsuit represents one such pathway, emphasizing the collective power of affected individuals when they stand united against corporate wrongdoing. It is crucial for potential claimants to be mindful of the approaching deadline and to proactively take steps to secure their position in the legal proceedings.

The Role of Third-Party Manufacturers in Pharmaceutical Compliance

The case also sheds light on the intricate nature of third-party manufacturing partnerships within the pharmaceutical sphere. As companies like Checkpoint rely on these arrangements to carry out pivotal stages of drug development and production, the standards and controls implemented at these contract manufacturers can have profound impacts on the regulatory outcomes for new drug applications. As such, this lawsuit prompts a broader discourse on the due diligence required in overseeing third-party operations to ensure compliance with stringent FDA regulations.

The Implications of FDA Approval Processes

The FDA's response to the cosibelimab BLA underscores the rigorous scrutiny applied to the approval process for new drugs. The protocols established by the FDA are designed to protect the safety and well-being of patients, making the integrity of the data and manufacturing conditions submitted by pharmaceutical companies of paramount importance. Unfavorable findings during an FDA inspection can not only halt a drug's path to market but also have significant financial repercussions for the companies involved.

Stock Market Sensitivity to Bio-Pharma Developments

Checkpoint Therapeutics' stock value plummet following the FDA's feedback is a stark reminder of the volatility inherent to the biopharmaceutical sector. The fortunes of companies within this industry are heavily dependent on clinical outcomes and regulatory approvals, which means that investors often face substantial risks. This lawsuit also raises concerns about the potential for drastic market moves based on the quality and transparency of a company's internal practices and public disclosures.

Ensuring Transparency and Accountability

The core allegations against Checkpoint Therapeutics revolve around the expectation of honesty and full disclosure in communications with investors and the public. This ongoing legal saga brings to the forefront the vital responsibility that biopharmaceutical companies have to maintain transparency in their operations and the necessity for punitive measures when those standards are not met. Should wrongdoing be proven, this case could serve as a precedent for accountability within the industry.

A Tradition of Legal Vigilance by Pomerantz LLP

Firmly rooted in a tradition of legal vigilance, Pomerantz LLP's commitment to holding corporations accountable has been the driver of its longstanding success. As the firm takes up the torch for investors in this case, they reinforce their role as guardians of equitable market practices and proponents of investor rights. Their historical achievements in advocating for those wronged in the securities market underscores the firm's dedication to justice and fairness.

Final Thoughts for Shareholders and Observers

As the details of this case continue to unfold, observers and shareholders alike bear witness to the evolving dynamics between corporate responsibility, regulatory compliance, and investor advocacy. This case not only serves as an important example of legal recourse for those affected by corporate misdeeds but also acts as a deterrent to other firms that might be tempted to cut corners or be less than forthright in their business dealings. It's a narrative that captures the complexity of navigating legal frameworks, the importance of regulatory oversight, and the never-ending pursuit of integrity in the capital markets.