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

Pomerantz Law Firm Launches Class Action Against PepGen Inc.

Pomerantz LLP, a leading law firm known for its expertise in securities litigation, has announced the filing of a class action lawsuit against PepGen Inc. and several of its top executives. The action aims to address alleged violations of federal securities laws that occurred between March 7, 2024, and March 3, 2025, during which time innocent investors acquired PepGen securities.

Background of PepGen Inc.

PepGen Inc. is a clinical-stage biotechnology company specializing in innovative therapies for severe neuromuscular diseases. Its flagship product candidate, PGN-EDO51, aims to offer a treatment for Duchenne muscular dystrophy (DMD), a genetic disorder causing progressive muscle degeneration.

Allegations Against PepGen

The crux of the class action revolves around claims that PepGen and its executives made misleading statements regarding the efficacy and safety of PGN-EDO51. Specifically, investors were allegedly led to believe in the drug’s promising potential based on overly optimistic assessments of clinical trials known as the CONNECT1 and CONNECT2 studies.

1. Misleading Statements: The lawsuit contends that throughout the investi­gational period, executives made claims about PGN-EDO51's commercial viability that were not substantiated by the data.
2. Ineffective Treatment: Investors were not fully informed about concerns that PGN-EDO51 was less effective than advertised, leading to misguided confidence in the company’s product development strategy.
3. FDA Interaction: The U.S. Food and Drug Administration (FDA) raised significant concerns related to patient safety during studies, which were not disclosed adequately to investors. Notably, PepGen had to announce a clinical hold on its CONNECT2 study, further emphasizing gaps in its regulatory strategy.

Timeline of Key Events

• - July 30, 2024: PepGen released what it called 'positive' clinical data from PGN-EDO51 phases, but experts in the market quickly pointed out the results fell short of expectations, leading to a sharp decline in stock prices.
• - December 16, 2024: The FDA placed the CONNECT2 clinical trial on hold due to identified risks, triggering another drop in the company's stock value.
• - January 29, 2025: PepGen acknowledged safety issues from the CONNECT1 study, followed by requests from Health Canada for more information on safety concerns, which further eroded investor trust.
• - March 4, 2025: The firm decided to voluntarily pause the CONNECT2 study, prompting a notable drop in its share price and raising alarm bells among stakeholders.
• - May 28, 2025: Ultimately, PepGen revealed that PGN-EDO51 had failed to achieve its expected targets, announcing the discontinuation of its DMD development programs entirely.

Investor Participation

Investors who purchased PepGen securities within the defined Class Period may join the class action by contacting the firm before the deadline of August 8, 2025. Participation in the class could allow investors to reclaim some of their losses suffered due to the alleged inaccuracies presented by the company’s executives.

Conclusion

Pomerantz LLP remains a champion for investor rights, pursuing justice against alleged corporate misconduct. While the allegations against PepGen paint a troubling picture of corporate governance, the class action may help bring restitution to those affected by the company's actions. Interested parties can find more details and the official complaint on Pomerantz’s website. For direct inquiries regarding this case, reach out to Danielle Peyton at the law firm.

In a world where transparency is increasingly valued, this lawsuit highlights the critical need for companies to maintain integrity and communicate honestly with their stakeholders. The outcome of this case could set significant precedents in corporate accountability and investor protection within the biotechnology sector.