Faruqi & Faruqi Partners with PEPG Investors in Legal Action Against PepGen Securities Fraud

Introduction

Faruqi & Faruqi, LLP, a well-known national securities law firm, is poised to spearhead a significant legal action on behalf of investors who may have suffered losses due to potential wrongful practices by PepGen Inc. This investigation is crucial for shareholders who have incurred financial losses exceeding $50,000 between March 7, 2024, and March 3, 2025, in this innovative biotechnology firm.

Background on PepGen Inc.

PepGen Inc. is a biotechnology company publicly traded on NASDAQ with a focus on developing groundbreaking therapies for neuromuscular diseases. However, recent developments have raised serious concerns about the company’s practices and the accuracy of its public disclosures. According to initial reports, there are allegations that PepGen made misleading statements regarding the effectiveness of its drug candidate, PGN-EDO51, as well as the implications of its clinical trials, specifically the CONNECT2 study.

Allegations of Securities Fraud

The crux of the allegations revolves around several misleading statements made by PepGen executives. These assertions suggested that PGN-EDO51 was more effective and safer than what was actually demonstrated in clinical trials. Moreover, claims about successful outcomes from the CONNECT study have been contradicted by subsequent findings from analysts who pointed out that the actual increase in dystrophin levels was significantly below expectations.

Notably, the clinical trial faced considerable setbacks. On July 30, 2024, PepGen initially announced positive results from PGN-EDO51 but soon many analysts expressed their disappointment over the findings, leading to a sharp decline of 32.69% in stock value. By December 2024, the situation took a turn for the worse when the company received a clinical hold notice from the FDA, indicating that there were serious safety concerns about the ongoing studies.

By early 2025, further communications from PepGen revealed troubling information about the safety of participants in these studies, which compelled the firm to pause its CONNECT2 trial altogether. This strategic decision to halt operations coupled with an announcement to discontinue development of its DMD programs left investors in a precarious financial situation.

Importance of Legal Action

Given the series of damaging revelations, Faruqi & Faruqi recognizes the pressing need for an organized legal response. Investors who have experienced significant losses now have the opportunity to assume the role of lead plaintiff in a fledgling federal securities class action lawsuit. This role can provide investors not only a voice in the litigation process but also a chance to recover some losses stemming from the alleged fraudulent actions by the company.

Faruqi & Faruqi encourages any individuals affected by PepGen’s actions to engage with their legal team to explore their options. The firm is extending its services to accommodate shareholders who may possess evidence of wrongdoing, including whistleblowers, former employees, or any other relevant parties.

Conclusion

As the investigation unfolds, the legal ramifications for PepGen could be substantial. Investors are urged to act promptly, given the upcoming deadline of August 11, 2025, to submit motions to lead the lawsuit. This legal avenue provides a crucial chance for recovery and accountability for the alleged mismanagement of the company’s public disclosures.

For more details on this developing case and information on how to participate, potential plaintiffs can visit Faruqi & Faruqi’s website or contact their office directly. Faruqi & Faruqi remains committed to supporting investors in their pursuit of justice and recovery of losses associated with this unfortunate situation.