International worries for India based Covaxin producer Bharat Biotech are getting worse. Shareholders of Bharat Biotech's US partner Ocugen are accusing the company of committing fraud by deliberately sharing materially false and misleading statements over the progress of Covaxin vaccine between February 2 and June 10.
Ocugen ahead of it's partnership with Bharat Biotech was already facing a threat of delisting from the tech index Nasdaq as it was unable to maintain the minimum price of $1/share. However as the company announced it's tie up with Ella's Biotech the share price shot up to $18 on the news that it was on track to seek an emergency approval for Covaxin in the US. This euphoria died soon as the USFDA rejected the emergency approval for Covaxin.
In a class-action lawsuit filed in the district of Pennsylvania , shareholders of Ocugen alleged that the company’s promoters Shankar Musnuri and Sanjay Subramaniam committed fraud for misleading information.
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