According to the Complaint, Infinity Pharmaceuticals, Inc. is a clinical-stage innovative biopharmaceutical company dedicated to developing novel medicines for people with cancer. Infinity purports to combine proven scientific expertise with a passion for developing novel small molecule drugs that target disease pathways for potential applications in oncology.

The Complaint alleges that for over a year, Defendants pushed the false narrative that Infinity’s flagship product, eganelisib, was proceeding apace in its clinical studies as a treatment for breast cancer. Specifically, Infinity touted two clinical studies: (1) MARIO-4, a randomized, double-blind Phase 3 study; and (2) MARIO-P, a platform study to evaluate additional combinations and indications where eganelisib might increase the effectiveness of available therapies. Then, on February 23, 2023, a merger was announced with MEI Pharma, Inc., and breast cancer treatment wasn’t mentioned.

On July 24, 2023, Infinity announced that the merger had been terminated, because shareholders of the merging company voted against it. The next day, on July 25, 2023, Infinity announced a “Value Preservation and Maximization Plan”, whereby it was, among other things, terminating 78% of its workforce.

The Complaint alleges that by representing to shareholders that Infinity was moving forward on the MARIO4 and MARIO-P studies for breast cancer and that Infinity had multiple partnership options, only to thereafter completely abandon that lead indication, was materially false and misleading.

Defendants filed a Suggestion of Bankruptcy for Infinity Pharmaceuticals, Inc. on October 9, 2023. On October 27, the Court stayed the case pending the outcome of bankruptcy proceedings.