Moderna, Inc. (MRNA) Investigation:
On May 18, 2020, Moderna announced encouraging preliminary results from the National Institute for Allergy and Infectious Diseases (“NIAID”)-led Phase 1 trial of Covid-19 vaccine candidate mRNA-1273. This news sent the price of Moderna shares sharply higher that day.
The next day, STAT published an article, “Vaccine experts say Moderna didn’t produce data critical to assessing Covid-19 vaccine.” According to the article, “[s]everal vaccine experts asked by STAT concluded that, based on the information made available by the Cambridge, Mass.-based company, there’s really no way to know how impressive – or not – the vaccine may be.” This news drove the price of Moderna shares sharply lower the next day.
Most recently, on June 1, 2020, CNN Business published an article, “Moderna coronavirus vaccine announcement set off a frenzy on Wall Street. Now some are calling for an investigation.” CNN highlighted a series of transactions that former SEC officials reportedly said should be investigated. First, just hours after Moderna’s May 18 announcement, the company sold 17.6 million shares to the public at $76 per share. Second, on May 18 and 19, 2020, Moderna’s CFO and CMO sold a combined $30 million worth of shares. Third, on May 21 and 22, 2020, the company’s leading shareholder (Flagship Pioneering) sold about $69.5 million worth of shares.
CNN reported Harvey Pitt, former chairman of the SEC, called the timing of the share sales “‘highly problematic’” and quoted another former SEC official as saying “[i]t looks like you’re hyping the stock so you can then go out and sell it.”
“We’re focused on investors’ losses and whether Moderna intentionally misled investors about how promising mRNA-1273 really is,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Moderna and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Moderna should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email MRNA@hbsslaw.com.
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Reed Kathrein, 844-916-0895