Biopharmaceutical Company Settles Charges for Disclosure Failures

ADMINISTRATIVE PROCEEDING
File No. 3-22462

March 12, 2025 - The Securities and Exchange Commission today announced settled charges against Massachusetts-based biopharmaceutical company Allarity Therapeutics, Inc. for disclosure failures through the conduct of certain former officers that concealed from the public a harsh critique levied by the Food and Drug Administration (FDA) in February 2020 about the likelihood that dovitinib, Allarity's flagship cancer drug candidate, would be approved by the FDA. Allarity has agreed to pay $2.5 million to settle the charges.

According to the SEC's order, Allarity learned in February 2020 that the FDA recommended against Allarity seeking approval for dovitinib because Allarity's data was insufficient and instead recommended Allarity conduct a new Phase III clinical trial, which it had no intention of doing. The SEC's order states that Allarity did not disclose this information to investors, and instead made false and misleading claims to investors about dovitinib's efficacy and the likelihood that dovitinib would be approved by the FDA while continuing to raise money from investors to stay afloat. According to the order, these claims appeared in several documents that were filed with the SEC or posted on Allarity's website.

The SEC's order finds that Allarity violated Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933, Section 13(a) of the Securities Exchange Act of 1934 and Rule 13a-11 thereunder. Without admitting or denying the order's findings, Allarity has consented to the entry of an order in which it agreed to cease and desist from committing or causing any violations and any future violations of these provisions of the federal securities laws and pay a $2.5 million penalty.

The SEC's case is being handled by Dawn Edick, David Fox, Susan Cooke and Amy Gwiazda of the Boston Regional Office.