A $3 million settlement has been reached in a securities class action filed against clinical-stage drug developer Humanigen over the company’s alleged overhyping of the potential that its lead product candidate, lenzilumab, would be approved as a treatment for COVID-19.

The $3 million settlement was approved Sept. 13 in the U.S. District Court for the District of New Jersey, which resolved In re Humanigen Inc. Securities Litigation. The claim, filed by lead plaintiffs Alejandro Pieroni, Dr. Scott Greenbaum and Joshua Mailey, alleged that the drugmaker overstated the prospects of lenzilumab, which allowed the company to raise over $300 million through public offerings, according to the opinion.