Lead Plaintiff Deadline and Class Action Lawsuit Details

Investors in Allarity Therapeutics, Inc. (NASDAQ:ALLR) brace for a securities class action lawsuit filed in the United States District Court for the Southern District of New York. The Class Period runs from May 17, 2022, to July 19, 2024.

Allegations Against Allarity

The lawsuit alleges that Allarity Therapeutics, Inc. made false statements and omitted crucial facts about its business and operations throughout this period.

Specifically, the company is accused of overstating the regulatory prospects of the Dovitinib New Drug Application, engaging in illicit conduct regarding the Dovitinib NDA and DRP PMA, and downplaying the risks associated with regulatory scrutiny.

SEC Investigations and Stock Price Plummets

On February 6, 2023, Allarity received an SEC investigation letter, causing its stock price to drop by 3.8%. Another blow came on December 11, 2023, with the termination of the CEO, leading to a 13.4% stock price decline.

On July 22, 2024, Allarity’s troubles escalated when it received a Wells Notice from the SEC, directly linked to the previously disclosed investigation into its disclosures.