Inovio Class Action Lawsuit Over False Vaccine Claims
A class-action lawsuit claims that pharmaceutical company Inovio deceived the public about developing a COVID-19 vaccine, leading its stock to rise and then crash.
Patrick McDermid v. Inovio Pharmaceuticals Inc. et al.
Plaintiffs submitted a motion to certify the class action on Thursday, claiming thousands of investors were affected.
The class action says that between Feb. 14 – Aug. 10, amid the 2020 pandemic, Inovio issued intentionally confusing representations about its development of a COVID-19 vaccine in an effort to capitalize on virus fears and drive up the company’s trading price.
According to a September version of the suit, the defendants’ continuous fraudulent scheme has resulted in severe losses to investors and enabled the company to raise more than $320 million in stock offerings.
False Claims To Increase Stock Prices
A part of the lawsuit is based on two public statements made by Inovio Chief Executive J. Joseph Kim last year, one in February and the other in March.
Kim’s first statement claimed that Inovio developed its vaccine after three hours of obtaining the genetic sequence for COVID-19. This comment resulted in a 7.5% in the company’s stock. In March, he stated that Inovio created a COVID-19 vaccine in less than three hours, causing the stock to surge 69.7%.
In response to these revelations, Citron Research stated online that Inovio’s claims were absurd and hazardous and requested the U.S. Securities and Exchange Commission (SEC) to conduct an investigation.
Inovio’s motion to dismiss was partially granted in February, but the majority of the investors’ initial claims were permitted to proceed.
The investors filed for certification on Thursday, claiming that damages could be computed using a class-wide methodology.
In addition, they noted that people who bought Inovio equity securities throughout the class period also suffered losses as a result of the same alleged conduct.
Lastly, they stated that their filings satisfied the required elements of numerosity, typicality, commonality, and sufficiency.
Editor’s Note on Inovio Vaccine Stock Class Action Lawsuit 2021:
This article is written to inform you of the class-action lawsuit filed against Inovio over allegedly making false claims concerning Covid-19 vaccines.
Case Name & No.: Patrick McDermid v. Inovio Pharmaceuticals Inc. et al., Case No. 2:20-cv-01402
Jurisdiction: U.S. District Court – Eastern District of Pennsylvania
Allegations: Inovio allegedly made false claims to increase its stock offering
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