Ibio Inc (NYSEMKT:IBIO) Faces Spate Of Class Action Suits Alleging Misleading Information

There was a spate of class action suit being filed against Ibio Inc (NYSEMKT:IBIO) for the alleged misleading information. It related to the launch of platform patents and associated proprietary technology to be licensed by ZMapp, who are the makers of Ebola drug.

Read what this analyst has to say about IBIO.

 

Class Action Suit

There were at least eight class action suits being filed by different law firms in November. The latest to join the list of law firm to file a case against Ibio was Levi & Korsinsky on December 1. The law firm filed a case before the Delaware District Court of the United States alleging Ibio of misleading information. It indicated launching platform patents and associated proprietary technology, which would be licensed by Ebola drug maker, ZMapp.

Similarly, other law firms like Faruqi & Faruqi, LLP, LEVI & KORSINSKY, LLP, and Brower Piven have also filed class action suit and charged the company of the same offense. It called upon investors, who invested in such stocks between October 13 and 23, and suffered a loss of over $100,000 to contact them to file a case against the company.

Law Firm Charges

The law firms blamed Ibio of providing misleading information that resulted in a surge in share price, as well as, volume.

On October 16, the company confirmed the applicability of its iBioLaunch platform patents besides associated proprietary technology to advance the development, as well as, production of antibodies, which targeted the Ebola virus.

Ibio has also offered to help the establishment by making available its proprietary technology for emergency use to allow not only the manufacture but also yield optimization of some experimental antibody-based drugs. The company’s statement came in the wake of Ebola virus outbreak.

The law firms said that investors believed Ibio and made an investment after its announcement. Now that the stock has plummeted, the law firms see some conspiracy in boosting the share price through misleading information.

Technical

ibio

Ibio Inc (NYSEMKT:IBIO) has been among the most volatile stocks in the last quarter of this calendar year as it appreciated by 6-7 times in the period of last September-October and then crashed to lose all of the gains. The Friday low of $0.64 should see some bottom pickers coming but a failure on their part may take it lower to the next major support near $0.50 levels. Any attempt to rally may face selling pressure from the area of $0.85-$0.95 as there is not a single sign of any serious accumulation taking place.

 

About the Author

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.

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