NEW YORK, Sept. 23, 2023 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Infinity Pharmaceuticals, Inc. ("Infinity" or the "Company") (NASDAQ: INFI) and reminds investors of the October 16, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Infinity stock or options between January 5, 2022 and July 24, 2023 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/INFI.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Infinity overstated its prospects for a breast cancer treatment; (2) Infinity was overly optimistic about its breast cancer studies; (3) all the foregoing, once revealed, was likely to negatively impact Infinity's business, financial results, and reputation; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
For over a year, Defendants pushed the false narrative that Infinity's flagship product, eganelisib, was proceeding apace in its clinical studies as a treatment for breast cancer. Specifically, Infinity touted two clinical studies: (1) MARIO-4, a randomized, double-blind Phase 3 study; and (2) MARIO-P, a platform study to evaluate additional combinations and indications where eganelisib might increase the effectiveness of available therapies.
On February 23, 2023, before the stock market opened, Infinity announced via a webcast (the "Webcast") that it had entered into a merger agreement with MEI Pharma, Inc. The proposed transaction was all stock, pursuant to which Infinity shareholders would receive shares of MEI common stock. Infinity would become a wholly-owned subsidiary of MEI, with outstanding equity post-closing being held 58% by MEI shareholders and 42% by Infinity shareholders.
During the Webcast, Defendant Perkins stated Infinity would "prioritize head and neck cancer." No mention at all was made of breast cancer treatments. It was as if MARIO-4 and MARIO-P never existed, and breast cancer was never a priority for eganelisib treatment.
This pivot did not go unnoticed by the stock market, and the value of Infinity stock plummeted. Infinity stock had closed at $0.55 on February 22, 2023. The following day, on extraordinary volume of over 3 million shares, Infinity stock lost half its volume, closing at $0.28 per share. Typically, volume of shares traded on a daily basis was fewer than 500,000 shares. Infinity stock averaged over 2 million shares traded per day over the next week as the market absorbed the shocking news.
On February 21, 2023, Infinity's market cap was around $50 million, with $40 million in cash and a pipeline of products. On February 24, 2023, Infinity had a $20 million market cap, trading at half its cash value and essentially allocating $0 value to its pipeline. The combined market caps of both Infinity and MEI was $50 million. David Usso, of MEI, stated on the Webcast that expected cash after the merger was expected to be $100 million. So the price at which the two companies were trading was equivalent to only half of cash on hand.
On July 24, 2023, Infinity announced that the merger had been terminated, because shareholders of the merging company voted against it. On this news, Infinity's stock price fell $0.09, or 40%, to close at $.13 per share on July 24, 2023, thereby injuring investors further.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Infinity's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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