Kiromic BioPharma $1.225M Securities Settlement — About $0.08 a Share

Current Status

Claims are open. A Proof of Claim must be submitted online or postmarked by December 14, 2026. Judge Jennifer H. Rearden of the U.S. District Court for the Southern District of New York granted preliminary approval on August 25, 2026, and the fairness hearing is scheduled for December 17, 2026, at 11:45 a.m. The settlement has not received final approval, and no payment date had been announced as of October 3, 2026.

What Changed Recently?

The court preliminarily approved a $1,225,000 settlement in In re Kiromic BioPharma, Inc. Securities Litigation on August 25, 2026, appointed Strategic Claims Services as claims administrator, and set the December 14, 2026 claim deadline. The money is being paid by the insurer for three settling former Kiromic officers and directors under a stipulation signed March 5, 2026.

The lawsuit was filed in August 2022. Lead plaintiffs allege that Kiromic, a clinical-stage biotechnology company, and several of its officers and directors violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by failing to disclose in its June 2021 offering documents that the FDA had imposed a clinical hold, and by publishing statements indicating that no hold had been imposed. The Kiromic defendants maintain that they have meritorious defenses, and the court has not ruled for either side.

An earlier settlement was reached in 2023 but never approved. Kiromic filed for Chapter 7 bankruptcy in March 2025, which stayed the case, and the current settlement was negotiated afterward with the individual defendants, the bankruptcy trustee and the insurer. Claims against the Kiromic defendants are released, but claims against ThinkEquity LLC, the underwriter of the June 2021 offering, are not part of the settlement and continue.

Who Qualifies?

The settlement class covers all persons and entities that purchased or otherwise acquired Kiromic BioPharma common stock either pursuant or traceable to the June 2021 offering documents, or between June 25, 2021 and February 2, 2022, inclusive.

Excluded are the defendants, Kiromic’s officers and directors, their immediate families and affiliated entities, people who bought Kiromic stock on a foreign exchange, the plaintiffs in a separate warrant-holder lawsuit (Sabby Volatility Warrant Master Fund Ltd. v. Kiromic BioPharma, Inc.), and anyone who opts out.

How Much Can You Get?

Each eligible claimant receives a pro rata share of the net settlement fund based on a calculated “Recognized Loss.” The notice estimates an average recovery of about $0.08 per damaged share before fees and expenses, or about $0.05 after them, across roughly 16.2 million damaged shares. Those are averages, not a prediction for any one investor; the actual amount depends on when shares were bought and sold, the prices paid, and how many valid claims are filed.

The plan of allocation uses two formulas. Shares bought in the offering at $5.00 on or about June 30, 2021 are credited with the difference between $5.00 and the sale price if sold by August 5, 2022, or a flat $4.63 a share if still held at that date. Shares bought on the open market during the class period are capped by an inflation table of $0.99 a share for purchases from June 25 to July 15, 2021, $0.36 from July 16 to October 5, 2021, and $0.15 from October 6, 2021 to February 2, 2022, with a 90-day look-back price of $0.77 for shares held past the class period.

Lead counsel will ask for fees of up to one-third of the $1,225,000, plus litigation expenses and up to $10,000 in total awards to the lead plaintiffs, all paid from the fund if the court approves. No payment is made on a claim worth less than $10.