Class Action Lawsuit Filed Against PepGen Inc. and Its Officials Over Alleged Securities Violations

Class Action Lawsuit Filed Against PepGen Inc.

Pomerantz LLP has officially announced that it has filed a class action lawsuit against PepGen Inc. and certain of its officers. This lawsuit, which is registered under the United States District Court for the Eastern District of New York with the docket number 25-cv-03221, seeks to represent individuals and entities that purchased or acquired PepGen securities between March 7, 2024, and March 3, 2025. The purpose of this lawsuit is to recover damages stemming from what the plaintiffs claim are significant violations of the federal securities laws by the parties named in the suit.

Investors eligible to take part in this class action have until August 8, 2025, to submit their request to the Court to be appointed as Lead Plaintiff for the class. Details of the Complaint can be accessed at Pomerantz Law Firm's website. Those interested in discussing this action can reach out to attorney Danielle Peyton at 646-581-9980 or via email. It’s advised that inquiries via email include personal contact information and the number of shares involved.

PepGen Inc. is known for its focus on developing oligonucleotide therapeutics aimed at treating severe neuromuscular and neurological diseases. One of its most significant product candidates is PGN-EDO51, designed as a treatment for Duchenne muscular dystrophy (DMD), a degenerative muscle disorder caused by a mutation in the dystrophin gene. The company claims that PGN-EDO51 was designed to skip exon 51 of the dystrophin transcript, thereby enabling the production of a partial yet functional dystrophin protein, which could benefit around 13% of DMD patients.

The firm was conducting a series of Phase 2 clinical trials named CONNECT1-EDO51 and CONNECT2-EDO51 to evaluate the efficacy and safety of PGN-EDO51 for DMD treatment. Throughout the course of the Class Period, PepGen and its officials reportedly provided misleading information regarding the treatment’s clinical, regulatory, and commercial outcomes, leading investors to believe that the drug’s prospects were brighter than reality warranted.

The lawsuit outlines that during this period, executives from PepGen made several materially false statements about the company’s business operations, including claims about the effectiveness and safety of PGN-EDO51. Specifically, they failed to adequately disclose critical factors that suggested the treatment was less effective and safe than they suggested. It was also alleged that the CONNECT2 study was fraught with potential safety issues and deficiencies that undermined its compliance with U.S. Food and Drug Administration (FDA) standards for approval.

Following mixed results from initial studies, including a press release on July 30, 2024, which proclaimed positive data from PGN-EDO51’s first dosing experiment, analysts criticized the actual efficacy results. Despite reporting a mean absolute dystrophin level of just 0.61% of normal levels, the results fell short of market expectations, igniting significant concerns.

On account of these revelations, PepGen’s stock price plummeted by $5.55, a decline of 32.69%, on July 31, 2024. Subsequent setbacks continued, exacerbated by a clinical hold notice received from the FDA on December 16, 2024, which questioned the study's safety protocols, leading to further drops in stock value. Overall, these developments painted a troubling picture of PepGen's potential to deliver on its promises, culminating in the ultimate suspension of various ongoing studies related to PGN-EDO51.

Pomerantz LLP, founded by the notable attorney Abraham L. Pomerantz, is celebrated for its specialization in corporate and securities litigation. The firm has historically advocated for victims of securities fraud and corporate malfeasance, managing to recover billions for its class members over the decades. For more information, interested parties can visit Pomerantz Law Firm. This ongoing case will be important for investors seeking to understand the implications of corporate accountability in the biotech sector.

For those who fall under the class definition, this represents an opportunity to pursue compensation for financial losses attributed to possible corporate misconduct within PepGen. Stakeholders are encouraged to stay informed about this case as developments unfold.