NEW YORK, Aug. 4, 2016 /PRNewswire/ -- Robbins Geller
Rudman & Dowd LLP ("Robbins Geller")
(http://www.rgrdlaw.com/cases/keryx/) today announced that a class
action has been commenced on behalf of purchasers of Keryx
Biopharmaceuticals, Inc. ("Keryx" or the "Company") (NASDAQ:KERX)
common stock during the period between March
2, 2016 and July 29, 2016,
inclusive (the "Class Period"). This action was filed in the
United States District Court for the Southern District of
New York and is captioned
Erickson v. Keryx Biopharmaceuticals, Inc., et al., No.
1:16-cv-06218 (S.D.N.Y.).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from August 2,
2016. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests,
please contact plaintiff's counsel, Samuel H. Rudman, David A.
Rosenfeld or Andrew L. Schwartz of Robbins Geller at 800/449-4900
or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are
a member of this class, you can view a copy of the complaint as
filed or join this class action online at
http://www.rgrdlaw.com/cases/keryx/. 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.
The complaint charges Keryx and certain of its officers and
directors with violations of the Securities Exchange Act of
1934. Keryx is a biopharmaceutical company that develops and
markets treatments for renal disease. The Company's lead
product, Auryxia (ferric citrate), is an oral, ferric iron-based
compound that is used for the control of serum phosphorus levels in
patients with chronic kidney disease on dialysis. Keryx
commenced its commercial launch of Auryxia in the United States in December 2014.
The complaint alleges that during the Class Period, defendants
misrepresented and failed to disclose material adverse facts
regarding the Company's business and prospects, which were known to
defendants or recklessly disregarded by them, including that: (a)
the Company's sole third-party contract manufacturer for Auryxia
was experiencing manufacturing difficulties that would require it
to cease manufacture of Auryxia while the problems were rectified;
(b) without that contract manufacturer manufacturing Auryxia, Keryx
would not have enough inventory of Auryxia to meet its projected
sales guidance; (c) Keryx was attempting to get another third-party
manufacturer for Auryxia approved by the FDA, but that approval
would not come until at least November 2016; and (d) based on the
foregoing, defendants lacked a reasonable basis for their positive
statements about the Company, its business and financial prospects,
and its ability to meet its 2016 guidance during the Class
Period.
On August 1, 2016, Keryx issued a
press release and conducted a conference call with investors and
stock analysts. During the call, Keryx announced that due to
previously undisclosed manufacturing and supply issues, the Company
was facing an imminent supply interruption for Auryxia until at
least October 2016 and it was
withdrawing its fiscal 2016 guidance. Keryx also disclosed
that it would not be able to get its second contract manufacturer
approved by regulators until at least November 2016. On this
news, the market price of Keryx common stock declined
precipitously, falling $2.64 per
share, or 36%, from its close of $7.36 per share on July
29, 2016 to close at $4.72 per
share on August 1, 2016, on unusually
high trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers
of Keryx common stock during the Class Period (the "Class").
The plaintiff is represented by Robbins Geller, which has extensive
experience in prosecuting investor class actions including actions
involving financial fraud.
Robbins Geller is widely recognized as one of the leading law
firms advising U.S. and international institutional investors in
securities litigation and portfolio monitoring. With 200
lawyers in 10 offices, Robbins Geller has obtained many of the
largest securities class action recoveries in history and was
ranked first in both the total amount and number of shareholder
class action recoveries in ISS's SCAS Top 50 Report for the last
two years. Robbins Geller attorneys have shaped the law in
the areas of securities litigation and shareholder rights and have
recovered tens of billions of dollars on behalf of the Firm's
clients. Robbins Geller not only secures recoveries for
defrauded investors, it also strives to implement corporate
governance reforms, helping to improve the financial markets for
investors worldwide. Please visit rgrdlaw.com/cases/keryx/
for more information.
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SOURCE Robbins Geller Rudman & Dowd LLP