Ampio Pharmaceuticals, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Colorado on behalf of those who acquired Ampio Pharmaceuticals, Inc. (“Ampio”) (NYSE: AMPE) common stock between December 29, 2020 and August 3, 2022, inclusive (the “Class Period”). Investors have until October 17, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Ampio is a pre-revenue stage biopharmaceutical company focused on the research, development, and advancement of immunomodulatory therapies for the treatment of pain from osteoarthritis. The Company's lead product candidate, Ampion, purportedly has unique immunomodulatory action and anti- inflammatory effects, which may provide a treatment for individuals with inflammatory conditions including, but not limited to, OAK, osteoarthritis related to other joints (i.e., hip, shoulder, ankle and hand), and the widespread inflammation associated with COVID-19 infection.
After months of speculation the truth regarding the efficacy of Ampion for treatment of OAK began to unravel. On April 20, 2022, the Company issued a press release providing a regulatory update that the FDA had responded negatively to its Type C meeting request. On this news, Ampio shares price declined by $0.09 per share, or approximately 26.47%, from $0.34 per share to close at $0.25 per share on April 21, 2022.
On May 16, 2022, Ampio issued a press release announcing that an independent special committee of the Board (the “Special Committee”), with the assistance of independent legal counsel, was in the process of conducting an internal investigation relating to the AP-013 study.
In the premarket hours on August 3, 2022, Ampio issued a press release containing a letter authored by defendant Martino and non-defendant Kevin Buchi, Chairman of the Board, to Ampio’s stockholders (the “Stockholder Letter”). The Stockholder Letter reiterated that the basis of the previously announced investigation was primarily focused on: (i) the statistical analysis of Ampio’s AP-013 study; and (ii) the unauthorized provision of Ampion for use by individuals not participating in clinical trials. On this news, Ampio shares price declined by $0.06 per share, or approximately 37.50%, from $0.16 per share to close at $0.10 per share on August 3, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants: (i) inflated the Company’s true ability to successfully file a BLA for Ampion; (ii) inflated the results of the AP-013 study and the timing of unblinding the data from the AP-013 study; and (iii) that, as a result, of the foregoing, Defendants’ statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.