Elkhodari v. Therapeutics

Background

This putative shareholder class action alleges securities fraud claims against Unicycive Therapeutics, Inc. and its officers. Two shareholders initially sought appointment as lead plaintiff, but one withdrew. Andrew Coleman remained the only applicant, and no party opposed his motion.

Lead Plaintiff

The Private Securities Litigation Reform Act requires a court to select a lead plaintiff through a three-step process. The court first confirmed that the required notice had been published. It then determined that Coleman had the largest financial interest in the case. The court also found that Coleman had made an initial showing that his claims were typical of the proposed class and that he could adequately represent the class, as required by Federal Rule of Civil Procedure 23(a). The court appointed Coleman lead plaintiff.

Lead Counsel

Coleman selected Pomerantz LLP as proposed lead counsel. The court declined to appoint the firm at that time because of concerns about its performance in another securities class action before the court. In that earlier case, the court had issued an order requiring Pomerantz LLP to explain why it should not face professional-misconduct sanctions, although the court later dropped that order after the firm offered to forgo an attorney-fee award in that case.

The court said this record did not assure it that Pomerantz LLP would adequately protect the shareholder class. If Coleman chooses, Pomerantz LLP may file by December 15, 2025, a statement explaining how it will avoid the deficiencies identified in the earlier order. The court will consider that statement in deciding whether to appoint Pomerantz LLP as lead counsel. Alternatively, Coleman may select a different law firm. The court deferred the proposed appointment of Pomerantz LLP pending further order.