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Wolf Haldenstein Adler Freeman & Herz LLP announces that it is investigating XBiotech for potential violations of securities laws

1. Wolf Haldenstein is investigating XBiotech for potential securities fraud. 2. XBiotech paused its phase 2 rheumatoid arthritis program due to endpoint failure. 3. The study revealed irregularities at top enrolling clinical sites. 4. XBiotech's stock dropped over 29% following the program's pause.

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FAQ

Why Very Bearish?

The stock's significant drop indicates loss of investor confidence; similar past cases caused further declines.

How important is it?

Investigation often precedes negative price movements; high potential for harm to investment value.

Why Short Term?

Current investigations and paused studies may lead to immediate negative sentiment; historical cases show reactions last until clarity is provided.

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PLEASE CLICK HERE TO PROVIDE YOUR CONTACT INFORMATION NEW YORK, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein"), a preeminent national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of XBiotech Inc. (“XBiotech”) (NASDAQ: XBIT) The investigation concerns whether XBiotech and certain of its officers and/or directors have engaged in securities fraud. PLEASE CLICK HERE TO PROVIDE YOUR CONTACT INFORMATION On December 23, 2024, XBiotech announced that it was pausing the phase 2 rheumatoid arthritis program for its drug candidate, Natrunix while it seeks to understand the outcome from its recently completed Phase II, Double-Blind, Placebo-Controlled, Randomized study. According to the company, the program was paused due to its failure to meet the primary endpoint. The Company added that it suffered from “substantial irregularities that make unequivocal interpretation of the findings difficult.” XBiotech was planning the launch of additional studies in arthritis as well as other areas of rheumatology, including ankylosing spondylitis, which are now on hold while recent findings are evaluated. Irregularities in the Phase II study involved the highest enrolling clinical sites, including numerous subjects being enrolled multiple times. Although the study did not meet efficacy endpoints, discrepancies found during data analysis suggest caution in interpreting results. Findings of the study are still being analyzed to better understand the implications of the findings and determine how these results can be used to guide potential further rheumatology studies for Natrunix. On this news, the stock price dropped more than 29% from $6.38 to $4.50 per share. Wolf Haldenstein has experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas, and offices in New York, Chicago, Nashville and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly lauded by the courts, which have appointed it to major positions in complex securities, multi-district and consolidated litigation. If you wish to discuss this investigation or have any questions regarding your rights and interests, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com. Contact: Wolf Haldenstein Adler Freeman & Herz LLPGregory Stone, Director of Case and Financial AnalysisEmail: gstone@whafh.com or classmember@whafh.comTel: (800) 575-0735 or (212) 545-4774 This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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