MZKR - Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Instadose Pharma Corp. (INSD)
NEW YORK, Jan. 03, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Instadose Pharma Corp. (f/k/a Mikrocoze, Inc.) (“Instadose”, “Mikrocoze”, or the “Company”) (OTCMKTS: INSD; MZKR) in the United States District Court for the Eastern District of Virginia on behalf of investors who purchased Instadose’s common stock between December 8, 2020 and November 24, 2021, both dates inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company had performed inadequate due diligence into the Business Combination and/or ignored significant red flags associated with Instadose Canada; (ii) the Company’s internal controls and policies were inadequate to detect and/or prevent impermissible trading activity by control persons of the Company; (iii) the foregoing subjected the Company to a heightened risk of regulatory scrutiny and enforcement action; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On July 9, 2021, the Ontario Securities Commission (“OSC”) announced that the Chairman and Chief Executive Officer (“CEO”) of Instadose Canada, Grant Ferdinand Sanders (“Sanders”), was charged quasi-criminally with one count of fraud in relation to his role as Chairman and CEO of Instadose Canada, which, since July 2017, had raised more than $9.4 million from investors. The OSC alleged that investor funds were diverted to the benefit of Sanders, his family, and associates, and that Instadose Canada materially misrepresented the nature of its business.
On October 15, 2021, Instadose Canada announced that an overwhelming majority of its shareholders voted in favor of the Business Combination, which remains subject to customary closing conditions, including approval by a Canadian court. Following completion of the Business Combination, Instadose expected that its Board of Directors would consist of, among others, Sanders.
On November 24, 2021, in a filing with the U.S. Securities and Exchange Commission (“SEC”), the Company disclosed that “[o]n November 23, 2021, the Company was notified by the SEC that it had ordered, pursuant to Section 12(k) of the [Exchange Act], that trading in the securities of [Instadose] is suspended for the period from 9:30 a.m. EDT on November 24, 2021, through 11:59 p.m. EDT on December 8, 2021.” The Company advised investors that the SEC’s order specifically stated that “it appears to the [SEC] that the public interest and the protection of investors require a suspension in the trading of [Instadose] securities . . . because of questions and concerns regarding the adequacy and accuracy of information about Instadose . . . in the marketplace, including: (1) significant increases in the stock price and share volume unsupported by the company’s assets and financial information; (2) trading that may be associated with individuals related to a control person of Instadose . . .; and (3) the operations of Instadose[]’s Canadian affiliate.”
On this news, and after the Company’s common stock began publicly trading again on December 9, 2021, the Company’s stock price fell $22.61 per share, or 91.87%, to close at $2.00 per share on December 9, 2021.
Investors who purchased or otherwise acquired shares of Instadose should contact the Firm prior to the February 28, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
Please visit our website at http://www.gme-law.com for more information about the firm.