Allarity to Pay SEC $2.5 Million Over Drug Disclosure Claims (1)

Biopharmaceutical company Allarity Therapeutics Inc. agreed to pay $2.5 million to settle US Securities and Exchange Commission allegations that it concealed bad news about the prospects of federal approval of its flagship drug, misleading investors as it raised money to stay afloat.

Allarity neither admitted to nor denied the regulator’s claims, the Boston-based company said in a statement Thursday.

“Throughout this process, we have fully cooperated with regulators, and we are pleased to have finalized this resolution with the SEC,” Allarity Chief Executive Officer Thomas Jensen said in the statement. The settlement doesn’t affect Allarity’s financial outlook, the company ...