SEC Says Allarity Leaders Hid FDA Issue Before Record Stock Drop

Allarity Therapeutics Inc. former executives concealed that the Food and Drug Administration wasn’t going to approve its key kidney cancer drug without more testing, the Securities and Exchange Commission said in a lawsuit.

The company’s steepest single-day stock drop to that point occurred after it ultimately revealed the FDA refused to review its new drug application in 2022, said the SEC’s complaint filed in the US District Court for the District of Massachusetts Wednesday.

Allarity, which is not a defendant in this suit, said Thursday it agreed to pay $2.5 million to the SEC without admitting or denying allegations it ...