Humanigen Board Sued for Alleged Omissions About Covid-19 Drug

Humanigen Inc.’s board faces a lawsuit alleging that it “grossly exaggerated” the commercial and clinical viability of a drug the biopharmaceutical company developed to treat hospitalized Covid-19 patients.

The shareholder derivative complaint, filed Tuesday by investor In Chul Yang in the US District Court for the District of New Jersey, says Humanigen made misleading statements about the outlook of its drug lenzilumab. The drug is intended to treat Covid-19 patients with the immune system problem cytokine release syndrome, which can result in organ dysfunction or failure.

The lawsuit seeks damages, accusing the New Jersey-headquartered company’s board of breaching ...