#United States #New York #Class Action #Pomerantz LLP #PepGen

Class Action Filed Against PepGen Inc.

On July 22, 2025, Pomerantz LLP announced the initiation of a class action lawsuit against PepGen Inc. and specific officers of the company. This legal action, which has been filed at the United States District Court for the Eastern District of New York, is aimed at representing a class of individuals and entities who purchased or acquired PepGen securities between March 7, 2024, and March 3, 2025. The lawsuit seeks to recover damages caused by the defendants’ alleged violations of federal securities laws, specifically targeting Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the corresponding Rule 10b-5.

Background of PepGen Inc.

PepGen Inc. operates in the biotechnology sector, focusing on oligonucleotide therapeutics that aim to treat severe neuromuscular and neurologic disorders. Their lead therapeutic candidate, PGN-EDO51, was designed to treat Duchenne muscular dystrophy (DMD), a debilitating genetic disease characterized by progressive muscle degeneration due to mutations in the dystrophin gene. PepGen claimed that PGN-EDO51 could skip exon 51 of the dystrophin transcript, potentially producing a functional variant of the dystrophin protein crucial for muscle health.

Throughout the class period, the lawsuit alleges that PepGen and its executives made numerous materially false statements regarding the efficacy, safety, and commercial prospects of PGN-EDO51. These statements were allegedly misleading in that they overstated the therapeutic’s capabilities and the outcomes of clinical trials, including the CONNECT1 and CONNECT2 studies, which were critically important for the drug's advancement.

Details of the Allegations

The complaint contends that the defendants made false or misleading assertions regarding:
1. The effectiveness and safety of PGN-EDO51, contrary to their claims.
2. The safety and adequacy of the CONNECT2 study for FDA approval purposes.
3. The likelihood of contingent events that would drastically affect PepGen’s clinical and capital standing, including the potential cessation of the CONNECT2 study.

Evidence presented in the lawsuit points to several key disclosure events that impacted PepGen’s stock price dramatically. For instance, on July 30, 2024, PepGen announced clinical data from the CONNECT1 trial, which revealed that PGN-EDO51's efficacy was significantly below expectations, causing a sharp decline in stock price. Later, when PepGen received a clinical hold notice from the FDA regarding the CONNECT2 study on December 16, 2024, further panic ensued in the market, leading to additional drops in share value.

On January 29, 2025, updates concerning safety concerns observed in the CONNECT1 study intensified shareholders' worries when PepGen acknowledged issues that impeded further participant enrollment and dose escalations due to safety concerns raised by health authorities.

Impact on Investors

Following subsequent disclosures of safety and efficacy concerns, PepGen's stock continued to face volatility. For example, on March 4, 2025, after PepGen reported pausing the CONNECT2 study to further evaluate the results from ongoing trials, the company's share price dropped significantly. By May 28, 2025, the firm announced the discontinuation of PGN-EDO51’s development, which presumably further distressed investors who felt misled by previous communications.

Participation in the Class Action

Investors who acquired PepGen securities during the class period are urged to take action. They have until August 8, 2025, to file to be appointed as Lead Plaintiff in this class action lawsuit. Interested parties can find more detailed information or a copy of the complaint by visiting the Pomerantz Law Firm's official website. Given the extensive history of securities litigation pioneered by Pomerantz—which has historically recovered billions for defrauded investors—this class action could be pivotal in addressing grievances stemming from alleged corporate misconduct at PepGen.

For more inquiries related to this case, individuals can reach out to Danielle Peyton at the Pomerantz Law Firm. Contact information is available on the firm’s website for those seeking participation or further advice on this significant legal initiative.

Conclusion

As developments unfold, the situation around PepGen Inc. serves as a powerful reminder of the complexities and challenges in the biotech field. Investors are advised to stay informed as the case progresses, and take time to understand the implications of corporate communications and their potential impact on shareholder equity.