SIGA Technologies, Inc. (SIGA) Investigation

The inquiry centers on the company’s statements about the likelihood of securing FDA approval to broaden the drug’s label. In October 2022, SIGA initiated clinical trials to assess TPOXX®’s safety and efficacy for Mpox treatment in the Democratic Republic of Congo.

SIGA’s CEO, Diem Nguyen, has consistently emphasized the urgent need for effective therapies like TPOXX® in light of ongoing global health threats. However, recent developments have cast doubt on the company's transparency.

On Aug. 15, 2024, the National Institute of Allergy and Infectious Diseases (NIAID) announced that the clinical trial for TPOXX® had failed to meet its primary endpoint. This news sent SIGA's stock price plummeting by nearly 20%. 

In a subsequent move that raised further concerns, SIGA abruptly terminated its Chief Medical Officer, Dr. Jay Varma, on September 23, 2024. The company provided no explanation for the dismissal.  This news also sent the price of SIGA shares crashing.

The situation took a more dramatic turn on September 25 when a video surfaced online featuring Varma discussing TPOXX®.  While the video’s authenticity and date of recording remain unverified, it allegedly captures Varma making statements that : (1) “[w]e also need to keep up the people’s belief that the drug works[;]” (2) “[s]o that’s why spinning it into the media is helpful[;]” (3) “[y]ou can spin them so that people are [sic] won’t like dump the stock thinking that the company is worthless[;]” and (4) “the people that we need to buy it are not going to be as confident because the data doesn’t look as strong as it would have if we designed it in a different way.” The price of SIGA shares again fell significantly lower that day.

The revelations have had a significant impact on SIGA's stock price and prompted shareholder rights firm Hagens Berman to commence an investigation into possible violations of the U.S. securities laws.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the SIGA investigation about?

We are looking into whether SIGA Technologies may have misled investors about TPOXX® efficacy for treating Mpox and additional commercial prospects for it.

WHAT SHOULD I DO?

I worked at SIGA. What should I do?

If you were an employee of SIGA, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in SIGA, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any SIGA investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.