Legal Proceedings
+Added: On March 25, 2020, a putative securities class action was filed in the United States District Court for the Southern District of California naming the Company and certain of its current or former officers as defendants.
+Added: The complaint purports to assert claims under Section 10(b) of the Exchange Act Rule 10b-5, and Section 20(a) of the Exchange Act, on behalf of persons and entities who acquired our common stock between October 10, 2017 and November 7, 2019 (the “Class Period”).
+Added: An amended complaint was filed on September 30, 2020 alleging that, during the Class Period, the defendants made material misrepresentations or omissions regarding our etokimab product candidate that artificially inflated our stock price.
+Added: The plaintiff seeks, among other things, damages in an unspecified amount, as well as costs and expenses.
+Added: We believe that the plaintiff’s allegations are without merit and intend to vigorously defend against the claims.
+Added: Because the Company is in the early stages of this litigation matter, we are unable to estimate a reasonably possible loss or range of loss, if any, that may result from these matters.
+Added: On September 1, 2020, a related shareholder derivative complaint was filed based on allegations substantially similar to those in the class action, and asserting claims against current or former officers and directors for contribution under Sections 10(b) and 21D of the Exchange Act, breach of fiduciary duty, unjust enrichment and corporate waste.
+Added: On January 28, 2021, this derivative action was voluntarily dismissed without prejudice.
From time to time, we may be involved in legal proceedings arising in the ordinary course of our business.
−Removed: We are not presently a party to any legal proceedings that, in the opinion of management, would have a material adverse effect on our business.
+Added: We investigate these claims as they arise and accrue estimates for resolution of legal and other contingencies when losses are probable and estimable.
Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity and reputational harm, and other factors.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.