Kadima Neuropsychiatry Institute Files Suit Against NRx Pharmaceuticals (NASDAQ: NRXP), Alleging Breach of Contract and Misrepresentation in Connection with Acquisition
Complaint filed in San Diego County Superior Court seeks specific performance, alleging NRx warranted it had funds to close while concealing it lacked committed financing for the transaction.
Kadima Neuropsychiatry Institute and its founder, Dr. David Feifel, have filed a complaint against NRx Pharmaceuticals, Inc. (NASDAQ: NRXP) and two of its subsidiaries in San Diego County Superior Court, alleging breach of contract and misrepresentation in connection with an acquisition agreement that the defendants warranted they had the financial capacity to close. The planned transaction represents a significant percentage of NRx’s current market capitalization.
The complaint names NRx, its subsidiary Hope Therapeutics Inc., and Hope’s subsidiary HTX Management Company LLC as defendants. It seeks specific performance in a court order compelling the defendants to close the transaction on the terms set forth in the parties’ executed agreement.
“We are confident that the evidence will demonstrate a clear pattern of intentional deceit by NRx, as it used Kadima’s and Dr. Feifel’s reputations to boost its share price through press releases and joint investor presentations, but then refused to fulfill its commitment to close the transaction,” said Andrew Selesnick, counsel to Kadima and a partner at Buchalter LLP. “Though confidentiality clauses in the agreement prohibit us from disclosing certain transaction details in a public filing, we look forward to presenting the complete set of facts in court.”
