Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international securities and consumer rights litigation firm, today announced that it has filed a class action lawsuit against NextCure, Inc. ("NextCure" or the "Company"), certain directors and officers of the Company, and the underwriters of NextCure’s November 2019 public offering (collectively, "Defendants").
The action, which was filed in the U.S. District Court for the Southern District of New York, asserts claims under §§10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§78j(b) and 78t(a), and U.S. Securities and Exchange Commission ("SEC") Rule 10b-5 promulgated thereunder, , 17 C.F.R. §240.10b-5, on behalf of investors who purchased NextCure securities between November 5, 2019 and July 14, 2020, inclusive (the "Class Period") and who were damaged thereby (the "Class"). The action also asserts claims under §§11 and 15 of the Securities Act of 1933 (the "Securities Act"), 15 U.S.C. §§77k and 77o, 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.
NextCure is a clinical-stage biopharmaceutical company that strives to discover and develop immune-oncology therapies.
The complaint alleges that Defendants violated provisions of the Exchange and Securities Acts by misleading investors regarding its leading treatment candidate, NC318. Specifically, 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.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from the date of this notice. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Plaintiff’s counsel, Jonathan Zimmerman of Scott+Scott at (888) 398-9312 or via email at firstname.lastname@example.org.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights litigation throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, Connecticut, California, Ohio, Virginia, London (U.K.), and Amsterdam (Netherlands).