Altimmune Hit With Derivative Suit Over Obesity Drug Statements

Altimmune Inc.’s directors were sued by a shareholder who alleges misleading statements about its experimental weight loss drug will cost the company millions.

The derivative lawsuit comes several months after a short report by Kerrisdale Capital questioned the ability of Altimmune’s treatment to compete with drugs like Ozempic. Altimmune has also been sued by shareholders in a proposed class action.

“The Company will have to expend many millions of dollars” because of the directors’ alleged misconduct, the derivative lawsuit said. The complaint highlighted the cost of defending the shareholder suit and a need “to undertake internal investigations,” among other things. ...