Investors have sued Ocugen Inc. for alleged violations of US Federal Securities Laws. The US-based company is Bharat Biotech’s partner for developing and distributing Covaxin in the US and Canada. Legal firm Pomerantz has filed a class-action lawsuit against Ocugen, on behalf of persons and entities, except Ocugen itself, who acquired Ocugen stocks between February 2, 2021 and June 10, 2021.
Ocugen’s share prices climbed to close at $3.26 per share on February 2, 2021 from $1.81 per share on the previous day. This happened after Ocugen announced its partnership with Bharat Biotech to manufacture and distribute Covaxin vaccine in the US.
Pomerantz alleged that Ocugen announced its plans on February 5, 2021 to apply for Emergency Use Authorization(EUA) for Covaxin with the US FDA but it “failed to disclose that the information submitted to the (US)FDA was insufficient to support an EUA, Ocugen would not file an Emergency Use Authorization with the FDA, (and) as a result of the foregoing, the Company’s financial statements, as well as defendants’ statements about Ocugen’s business, operations, and prospects, were false and misleading or lacked a reasonable basis.”
On June 10, 2021, Ocugen announced that it would apply for a biologics license application(BLA) instead of an EUA. This brought Ocugen share prices down to $6.69 per share by the end of the day from $9.31 per share on June 9, 2021.