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Abraham, Fruchter & Twersky, LLP Announces Filing of Class Action Lawsuit against Mannkind Corporation

^{Published on 2011-02-11 08:16:32 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Abraham, Fruchter & Twersky, LLP announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of a class (the aClassa) of investors who purchased Mannkind Corporation (aMannkinda or the aCompanya) (NASDAQ:MNKD) common stock between the period of June 25, 2010 through January 19, 2011.

The Complaint alleges Mannkind and certain of its officers and directors with violating federal securities laws by failing to disclose that AFREZZA, an inhalation powder produced by the Company and used to treat adult patients with Type 1 and Type 2 diabetes to control hyperglycemia, was a riskier product than investors were led to believe. Defendants issued false and misleading statements regarding the Companya™s business prospects for AFREZZA by touting AFREZZA as one of the most valuable products in the history of drug making. However, the Company failed to disclose that additional risk disclosure to patients would be required if approved and that the FDA had concerns regarding the clinical utility of AFREZZA that might have a negative impact on approval of the drug.

On January 19, 2011, prior to the market close, the Company issued a press release announcing that the Company had received a complete response letter from the FDA pertaining to the Companya™s New Drug Application for AFREZZA deferring approval of AFREZZA and requested two additional clinical trials with the inhaler, the value of Mannkind stock declined significantly.

In a reaction to this news, shares of Mannkind common stock plunged and trading was halted. The following day, on January 20, 2011, Mannkind common stock dropped $2.94 per share to close at $6.17 per share, representing a drop of more than 32%.

If you purchased Mannkind common stock between June 25, 2010 through January 19, 2011 and you wish to serve as lead plaintiff in this action, you must move the Court no later than April 1, 2011. 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 would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Jack G. Fruchter or Arthur J. Chen of Abraham, Fruchter & Twersky, LLP toll free at (800) 440-8986, or via e-mail at [ info@aftlaw.com ] or [ achen@aftlaw.com ].

Abraham, Fruchter & Twersky, LLP has extensive experience in securities class action cases, and the firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services.

Attorney Advertising. Prior results do not guarantee a similar outcome.