An investigation on behalf of investors of Eli Lilly and Company (NYSE: LLY) shares over potential securities laws violations by Eli Lilly and Company and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Eli Lilly and Company (NYSE: LLY) concerning whether a series of statements by Eli Lilly and Company regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

In August 2020, Eli Lilly and Company began a clinical trial to test whether adding the Company's antibody-based drug, LY-CoV555, to remdesivir would benefit patients diagnosed with COVID-19.

On October 13, 2020, the trial's sponsor, the National Institute of Allergy and Infectious Diseases ('NIAID') recommended that the trial be paused after an analysis of safety data found 'an overall difference in clinical status between the group receiving LY-CoV555 and the group receiving saline placebo.'

Shares of Eli Lilly and Company (NYSE: LLY) declined from $157.15 per share on October 9, 2020 to as low as $142.24 per share on October 19, 2020.