Investors Raise Concerns as Pomerantz Law Firm Investigates XOMA Royalty Corporation

Pomerantz Law Firm Investigates XOMA Royalty Corporation's Practices

Pomerantz LLP, a well-known law firm specializing in securities class actions, has recently begun an investigation into claims surrounding XOMA Royalty Corporation (NASDAQ: XOMA). This investigation is particularly significant for investors who may have faced losses during the company’s recent clinical trial disappointments.

On December 11, 2025, XOMA’s development partner, Rezolute, Inc., announced the results of its Phase 3 clinical study known as the sunRIZE trial. The study aimed to evaluate the efficacy of ersodetug in treating congenital hyperinsulinism (HI), a condition that can cause dangerously low blood sugar levels. Unfortunately, the results revealed that the primary endpoint, which measured the change in average weekly hypoglycemic events, was not met. The trial did show a reduction in these events—approximately 45% at the highest dose of ersodetug—but this result was not statistically significant compared to the placebo group’s 40% improvement. The trial also failed to meet a key secondary endpoint measuring daily time spent in hypoglycemia via continuous glucose monitoring (CGM).

This news sent shockwaves through the market, resulting in a dramatic decline in XOMA's stock price. On December 19, 2025, shares of XOMA fell by $7.82, or 22.76%, closing at $25.39. Investors who had put their faith in XOMA's development and the potential of ersodetug to treat HI now face a troubling reality as the company wrestles with the repercussions of these results.

The allegations of securities fraud or other unlawful activities involving XOMA and its executives are serious. Pomerantz LLP is advising investors impacted by the drop in stock value to reach out to their office for further guidance. Danielle Peyton, a representative of the firm, is available for contact and ready to assist those who want to know more about joining the class action suit.

So what does this mean for investors? The potential for a class action lawsuit signifies a call to action for those who feel wronged by the company’s disclosures—or lack thereof. Legal experts point out the necessity for corporations like XOMA to transparently communicate trial results, particularly when such outcomes drastically affect stock prices and investor trust.

Pomerantz LLP, with its long-standing reputation in the area of corporate litigation, investigates and advocates for the rights of investors who might have suffered due to misleading information or discrepancies in financial reporting. The firm, established by Abraham L. Pomerantz more than 85 years ago, has a legacy of championing victims of securities fraud, fiduciary breaches, and corporate misconduct, making it a beacon for those looking for justice in the often murky waters of corporate investments.

As investors await further news from XOMA, the investigation by Pomerantz LLP serves as a critical reminder for stakeholders to remain vigilant and informed. Those affected by the recent market turbulence are encouraged to stay in touch with legal advisors and keep abreast of developments as the situation unfolds. It's a stark reminder of the risks involved in investing within the biotech sector, where clinical trials can make or break fortunes overnight.

With clinical trials being a nuanced and often unpredictable process, the stakes for investors continue to be high. As the case progresses, affected parties may find solace in the legal support that firms like Pomerantz LLP offer, ensuring that every investor has a voice, even amidst the uncertainties of the market.