Ongoing Investigation by Pomerantz Law Firm for PepGen Inc. Investors Raises Concerns About Securities Fraud

In an unsettling development for shareholders of PepGen Inc., Pomerantz LLP, a prominent law firm known for its advocacy in corporate and securities law, has initiated an investigation regarding claims related to possible misconduct within the company. PepGen, traded on NASDAQ under the abbreviation PEPG, has recently come under scrutiny after announcing a temporary halt to a pivotal Phase 2 clinical trial, raising eyebrows among investors concerned about the company's transparency and business practices.

In early March 2025, PepGen released a statement revealing its decision to pause the ongoing CONNECT2-EDO51 study, which pertains to a treatment for Duchenne muscular dystrophy (DMD). The pause was deemed necessary for the company to evaluate the results from a previous study's cohort, igniting fears about the viability of its product pipeline. Following this announcement, PepGen’s stock price took a significant hit, plummeting by nearly 19%, a move that alarmed many investors and prompted the law firm’s investigation into the company’s actions.

Pomerantz LLP's investigation will delve into whether PepGen, along with some of its directors and executives, may have engaged in fraudulent practices that misled investors about the company's financial health and operational integrity. Given Pomerantz's esteemed reputation in handling class-action litigation, this investigation indicates serious concerns about the management's adherence to ethical business practices.

Founded by the late Abraham L. Pomerantz, who is often referred to as the dean of the class action bar, the firm has over 85 years of experience fighting for the rights of investors. They have successfully secured millions of dollars in damages in previous cases of securities fraud and corporate wrongdoing, underscoring their commitment to holding companies accountable.

Investors who feel they may be affected by PepGen's actions are being encouraged to reach out to Pomerantz LLP, specifically contacting Danielle Peyton at the law firm directly. This outreach can help individuals understand their rights better and potentially join any forthcoming legal actions, such as class action lawsuits. The firm is also focused on providing information and advice related to the ongoing investigation and its ramifications for shareholders.

As the situation develops, PepGen’s investors remain on edge, eagerly awaiting clarity from both the company and the investigating law firm. With the stakes high in the biotechnology sector, particularly for companies like PepGen that are developing innovative treatments, the outcome of this investigation could significantly impact investor sentiments and the future of the company itself.

This ongoing investigation serves as a poignant reminder of the risks involved in investing in emerging biotech firms, where clinical developments can dramatically influence stock prices and investor confidence. Many are keeping a close watch on how Pomerantz LLP’s findings will unfold, which could lead to further legal actions against PepGen if wrongdoing is confirmed.

For those interested in following this case closely, more information about the investigation and its progress can be found by visiting the Pomerantz LLP website or by contacting their offices directly. Investors are advised to stay informed and active as this situation evolves, ensuring they are prepared to take necessary steps to protect their investments amid uncertainty in the market.