Arizona Tribune - IGC Pharma Evaluates Potential Recovery Options as Federal Jury Verdict Brings Renewed Attention to 2018 IGC Short Campaign

According to the United States Attorney's Office for the Central District of California, Andrew Left, founder of Citron Research, was found guilty of one count of engaging in a securities fraud scheme and 12 counts of securities fraud. The verdict follows a federal indictment that identified IGC, then known as India Globalization Capital, Inc., as one of the companies targeted in the alleged scheme.

IGC is evaluating whether the public record supports potential claims to recover damages arising from the alleged short campaign and related conduct that affected the Company and its shareholders.

The indictment alleged that, in October 2018, Left and a hedge fund worked together to execute a short campaign targeting IGC. The Company believes the public record raises serious questions regarding the conduct surrounding that campaign and its impact on IGC and its shareholders.

"The public record now describes conduct that we believe warrants serious review," said Ram Mukunda, Chief Executive Officer of IGC Pharma. "Our shareholders have asked for years what happened during the 2018 short campaign. We are now evaluating whether IGC has recoverable damages and what remedies may be available to protect the interests of the Company and its shareholders."

IGC is reviewing the federal indictment, the jury verdict, and related SEC materials, and is evaluating potential civil remedies. The Company is also evaluating whether recoverable damages may include harm to market value, reputational and operational harm, and legal and regulatory costs incurred in connection with matters arising from the conduct described in the public record. Any decision to pursue claims will be made by the Board of Directors, based on the recommendation of counsel and in the best interests of the Company and its shareholders.

The public record also describes financial incentives associated with the alleged short campaigns. The indictment alleged that trading related to short campaigns targeting IGC and another issuer generated more than $3.8 million in profits for the hedge fund involved and more than $1.1 million in profits for Left.

In a separate settled administrative proceeding, the Securities and Exchange Commission order stated that Anson Advisors agreed to pay a short publisher a share of trading profits from trading around a bearish tweet concerning IGC. According to the SEC order, AIMF's short positions on the day of the IGC tweet generated approximately $500,000 in trading profits. Without admitting or denying the SEC's findings, Anson Funds Management LP and Anson Advisors Inc. agreed to pay combined civil monetary penalties of $2.25 million.

The Company's primary operational focus remains the advancement of its Alzheimer's disease programs, including the Phase 2 CALMA clinical trial evaluating IGC-AD1 for agitation associated with Alzheimer's disease.

About IGC Pharma, Inc. (dba IGC, NYSE American: IGC):

IGC Pharma is a clinical-stage biotechnology company leveraging AI to develop innovative treatments for Alzheimer's and metabolic disorders. The Company's lead asset, IGC-AD1, is currently being evaluated in a Phase 2 CALMA trial for agitation associated with Alzheimer's dementia. The Company's pipeline includes TGR-63, targeting amyloid plaques, and early-stage programs focused on neurodegeneration, tau proteins, sleep, and metabolic dysfunctions. IGC integrates AI to support drug discovery, clinical trials optimization, and patient targeting.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's evaluation of potential civil remedies, potential claims, recoverable damages, Board and counsel review, and the Company's Alzheimer's disease programs, including IGC-AD1 and the CALMA trial. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially, including risks related to the availability and viability of any claims, the amount and recoverability of any damages, the timing, cost, and outcome of any potential proceedings, decisions by the Board of Directors and counsel, the Company's ability to complete enrollment in its Phase 2 CALMA trial within anticipated timeframes, demonstrate safety and efficacy, the timing of data readouts, regulatory approvals, and other factors discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-KT. The Company undertakes no obligation to update these statements except as required by law.

Contact Information:
Andres Sanchez
Investor Relations
[email protected]
+1 301-983-0998 / +1 (202) 569-2566

SOURCE: IGC Pharma, Inc.

View the original press release on ACCESS Newswire

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