According to a press release dated February 2, 2011, MannKind Corporation is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutic products for diseases, such as diabetes and cancer, including its lead product candidate, AFREZZA(R) (insulin human [rDNA origin]) Inhalation Powder ("AFREZZA") for the treatment of adult patients with Type 1 and Type 2 diabetes.
The Complaint alleges that during the Class Period, Defendants issued materially false and misleading statements regarding the Company's business and prospects for AFREZZA. Specifically, Defendants continuously hyped AFREZZA for the treatment of adult patients with Type 1 and Type 2 diabetes for the control of hyperglycemia, telling market observers that AFREZZA was one of the most valuable products in the history of drug making, while failing to disclose that MannKind's platform would require better information for patients about the risks of AFREZZA. As a result of Defendants' false and misleading statements, MannKind's stock traded at artificially inflated prices during the Class Period.
Then, on January 19, 2011, shortly before the market closed, MannKind issued a press release announcing that the Company had received a complete response letter from the FDA pertaining to the Company's New Drug Application for AFREZZA. The FDA deferred approving AFREZZA and requested two additional clinical trials with the inhaler. Prior to this news being released on January 19, 2011, MannKind's stock began dropping as news of the FDA deferral leaked into the market. The Complaint alleges that, in fact, the FDA notice had been received on January 18, 2011, and Defendants had held off informing shareholders. Trading was halted in MannKind stock on January 19, 2011, and when trading resumed the next day, MannKind's stock plunged $2.94 per share.
According to the Minutes entered on April 28, 2011, the Court appoints Choi as lead Plaintiff and Pomerantz Haudek Gossman & Gross LLP and Glancy Binkow & Goldber LLP as co-lead Counsel. The lead Plaintiff filed a Consolidated Class Action Complaint on June 27, 2011, and corrected the Complaint on June 28, 2011. On August 12, 2011, the Defendants responded by filing a motion to dismiss the case. The motion was denied on December 16, 2011.
On May 25, 2012, the Court issued an order granting stipulation to stay action post mediation.
On August 6, 2012, a Stipulation of Settlement was entered into the Court's docket. On September 12, 2012, the Court issued an order preliminarily approving the class action settlement.
On December 21, 2012, the Court issued an order on the motions for final approval of class action settlement, award of attorney fees, and reimbursement of expenses. On the same date, the Court also issued an order of final judgment and dismissal.
On January 17, 2014, the Court issued an order authorizing disbursement of the net settlement fund. On January 9, 2017, the Court authorized distribution of the residual balance of the net settlement fund to an appropriate cy pres organization.