Pomerantz Appointed Co-Lead Counsel in MannKind Securities Class Action

By order dated April 27, 2011, Pomerantz has been appointed Co-Lead Counsel in the securities litigation case against Mannkind Corporation.

The class action (Civil Action No.: 11-0114) pending in the United States District Court for the Central District of California is on behalf of a class of all persons or entities who purchased or otherwise acquired MNKD securities during the period from June 25, 2010 through and including January 19, 2011 (the “Class Period”). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

MannKind is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutic products for diseases, such as diabetes and cancer, including its lead product candidate, AFREZZA® (insulin human [rDNA origin]) Inhalation Powder ("AFREZZA") for the treatment of adult patients with Type 1 and Type 2 diabetes. The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and prospects for AFREZZA. The defendants continuously hyped AFREZZA for the treatment of adult patients with Type 1 and Type 2 diabetes for the control of hyperglycemia, telling market observers that AFREZZA was one of the most valuable products in the history of drug making, while failing to disclose that MannKind's platform would require better information for patients about the risks of AFREZZA. As a result of defendants' false and misleading statements, MannKind's stock traded at artificially inflated prices during the Class Period.

Then, on January 19, 2011, shortly before the market closed, MannKind issued a press release announcing that the Company had received a complete response letter from the FDA pertaining to the Company's New Drug Application for AFREZZA. The FDA deferred approving AFREZZA and requested two additional clinical trials with the inhaler.

Prior to this news being released on January 19, 2011, MannKind's stock began dropping as news of the FDA deferral leaked into the market. The complaint alleges that, in fact, the FDA notice had been received on January 18, 2011, and defendants had held off informing shareholders. Trading was halted in MannKind stock on January 19, 2011, and when trading resumed the next day, MannKind's stock plunged $2.94 per share.