Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against NextCure, Inc. (NXTC)
NextCure had been developing NC318 using proceeds from a 2018 research and development collaboration agreement with Eli Lilly.
NEW YORK, Sept. 22, 2020 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against NextCure, Inc. (“NextCure” or the “Company”) (NASDAQ: NXTC) in the United States District Court for the Southern District of New York on behalf of those who purchased or acquired the securities of NextCure between November 5, 2019 and July 14, 2020, inclusive (the “Class Period”). The action also asserts claims under §§11 and 15 of the Securities Act of 1933 on behalf of investors who purchased or acquired NextCure common stock pursuant or traceable to the Company’s Registration Statement and Prospectus filed with the SEC on November 12 and 18, 2019, respectively, and were damaged thereby.
The Complaint alleges that statements made by Defendants concerning the effectiveness of NC318, the responses observed in patients treated with NC318, and NC318’s potential to treat patients’ refractory to PD-1 therapies were false and misleading. NextCure had been developing NC318 using proceeds from a 2018 research and development collaboration agreement with Eli Lilly. On January 13, 2020, NextCure announced that Eli Lilly had ended its deal with the Company. Following this news, NextCure’s stock plunged, falling $4.70 per share, or approximately 8.3%, to close at $52.00 per share on January 13, 2020.
Then, pre-market on July 13, 2020, NextCure provided an interim update on the Phase 2 portion of its NC318 Monotherapy Phase 1/2 Trial, revealing that the Company was no longer planning to advance the non-small cell lung cancer and ovarian cancer cohorts in the Stage 2 portion of the Simon 2-stage trial, citing clinical response data and current enrollment criteria. The Company also announced the resignation of its Chief Medical Officer.
On this news, NextCure’s shares, which had closed at $17.88 per share on Friday, July 10, 2020, dropped over 54% on the next trading day, to close at $8.15 per share on July 13, 2020, on unusually high trading volume.
Investors who purchased or otherwise acquired shares of NextCure during the Class Period should contact the Firm prior to the November 20, 2020 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.