Wolf Haldenstein Adler Freeman & Herz LLP announces that it is investigating SIGA Technologies, Inc. for potential violations of federal securities laws

Wolf Haldenstein Adler Freeman & Herz LLP announces that it is investigating SIGA Technologies, Inc. for potential violations of federal securities laws

PR Newswire

NEW YORK, Sept. 26, 2024

NEW YORK, Sept. 26, 2024 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein"), a preeminent national shareholder rights litigation firm, announces that it is investigating potential securities claims on behalf of purchasers of SIGA Technologies, Inc.(NASDAQ: SIGA) ("SIGA" or the "Company")

SIGA Technologies, Inc. operates as a commercial-stage pharmaceutical company. The Company offers oral formulation of an antiviral drug for the treatment of human smallpox disease caused by variola virus. The Company had been conducting a clinical trial to evaluate the efficacy and safety of TPOXX (aka tecovirimat) in the treatment of mpox in combination with standard of care. On August 15, 2024, the preliminary analysis of the PALM 007 clinical trial revealed that TPOXX had failed to achieve its primary endpoint.

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Dr. Jay Varma, SIGA's Chief Medical Officer and Executive Vice President, was fired from his position following an investigative report that uncovered him on video publicly bragging about hosting sex parties while serving as a senior health adviser to former Mayor Bill de Blasio and attending an underground rave party in New York at the height of the COVID pandemic.

After the close of trading on September 23, 2024, the Company filed a form 8-K with the United States Securities and Exchange Commission ("SEC") stating:

"Pursuant to the terms of his employment agreement, Dr. Varma's service on the Company's Board of Directors also automatically ended effective immediately, which is required when an event occurs that is deemed to affect public-company shareholders." 

On September 25, 2024, video was released of Dr. Varma detailing how he and SIGA were engaged in a media "spin" campaign to salvage TPOXX as a mpox treatment and preserve the Company's stock price despite disappointing top line results in the PALM 007 clinical trial. According to Dr. Varma, the media "spin" campaign was designed to convince investors "not to dump the stock, thinking that the Company was worthless" while conceding that pursuit of TPOXX as a treatment for mpox might not even be worth it because "there's only a few thousand cases in the United States."

The stock declined 15.73% on September 25th, closing at $6.75, down $1.26 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 LLP
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com or classmember@whafh.com
Tel: (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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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP