Lawsuit filed for Investors who lost money with shares of Infinity Pharmaceuticals, Inc. (NASDAQ: INFI)

An investor, who purchased shares of Infinity Pharmaceuticals, Inc. (NASDAQ: INFI), filed a lawsuit over alleged violations of Federal Securities Laws by Infinity Pharmaceuticals, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) have certain options and for certain investors are short and strict deadlines running. Deadline: October 16, 2023. NASDAQ: INFI investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Cambridge, MA based Infinity Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing novel medicines for people with cancer.

The plaintiff alleges that for over a year, Infinity Pharmaceuticals, Inc falsy claimed 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.
On February 23, 2023, before the stock market opened, Infinity Pharmaceuticals, Inc announced via a webcast (the "Webcast") that it had entered into a merger agreement with MEI Pharma, Inc. The proposed transaction was all stock, pursuant to which Infinity shareholders would receive shares of MEI Pharma, Inc common stock. Infinity would become a wholly-owned subsidiary of MEI, with outstanding equity post-closing being held 58% by MEI shareholders and 42% by Infinity shareholders.
During the Webcast, Infinity Pharmaceuticals, Inc's CEO stated Infinity Pharmaceuticals, Inc would "prioritize head and neck cancer." No mention at all was made of breast cancer treatments. It was as if MARIO-4 and MARIO-P never existed, and breast cancer was never a priority for eganelisib treatment.

On February 21, 2023, Infinity Pharmaceuticals, Inc's market cap was around $50 million, with $40 million in cash and a pipeline of products.
On February 24, 2023, Infinity Pharmaceuticals, Inc had a $20 million market cap, trading at half its cash value and essentially allocating $0 value to its pipeline. The combined market caps of both Infinity and MEI was $50 million. David Usso, of MEI Pharma, Inc, stated on the Webcast that expected cash after the merger was expected to be $100 million. So the price at which the two companies were trading was equivalent to only half of cash on hand.
On July 24, 2023, Infinity Pharmaceuticals, Inc announced that the merger had been terminated, because shareholders of the merging company voted against it.

Shares of Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) declined from $1.76 per share on August 24, 2022, to as low as $0.09 per share on August 07, 2023.

The plaintiff claims that between January 5, 2022 and July 24, 2023, the Defendants failed to disclose to investors that Infinity Pharmaceuticals, Inc. overstated its prospects for a breast cancer treatment, that Infinity Pharmaceuticals, Inc. was overly optimistic about its breast cancer studies, that all the foregoing, once revealed, was likely to negatively impact Infinity's business, financial results, and reputation, and that as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Those who purchased shares of Infinity Pharmaceuticals, Inc. (NASDAQ: INFI) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.