#New York #US #Pomerantz LLP #PGN-EDO51 #PepGen

Pomerantz Law Firm Takes Action Against PepGen Inc.

Overview of the Class Action

Pomerantz LLP has initiated a class action lawsuit against PepGen Inc. and specific officers of the company, which primarily operates in the biotechnology sector. This action was filed in the United States District Court for the Eastern District of New York (case number 25-cv-03221). It aims to represent investors who purchased or acquired PepGen securities during the period from March 7, 2024, to March 3, 2025. The lawsuit seeks to recover damages sustained due to alleged violations of the federal securities laws.

The primary assertions state that the defendants are accountable for misleading statements regarding the company's financial health and its product development initiatives, particularly regarding their lead candidate, PGN-EDO51. The legal premise rests on Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.

What is PGN-EDO51?

PepGen Inc. is recognized for its focus on the development of oligonucleotide therapeutics targeting severe neuromuscular and neurological diseases. Its flagship candidate, PGN-EDO51, was intended for treating Duchenne Muscular Dystrophy (DMD), a genetic ailment characterized by swift muscle deterioration and weakness due to mutations in the dystrophin gene. The company's innovative treatment aimed to skip exon 51 of the dystrophin transcript, which may help around 13% of DMD patients by producing a truncated yet functional dystrophin protein involved in muscle function.

Clinical Trials and Misleading Statements

PepGen had been engaged in two significant Phase 2 clinical trials under the names CONNECT1-EDO51 and CONNECT2-EDO51 to evaluate the efficacy of PGN-EDO51. Throughout these trials, the defendants continually made statements that suggested strong prospects regarding the clinical and regulatory future of PGN-EDO51, including its supposed effectiveness in producing the dystrophin protein.

However, evidence presented in the lawsuit claims that the statements made during the class period were materially false and misleading. Key allegations include claims that PGN-EDO51 was not as effective or safe as claimed, that there were dangers or deficiencies linked to the CONNECT2 study that could affect its FDA approval, and that the overestimated clinical, regulatory, and commercial prospects could lead to the discontinuation of this crucial study.

Impacts of Disclosures

In July 2024, PepGen experienced significant market repercussions when it announced less than favorable clinical data from its CONNECT1 study, leading to a sharp decline of 32.69% in stock price. Moreover, subsequent announcements regarding safety concerns and a clinical hold from the FDA further exacerbated the situation, causing additional losses for investors as the stock price fell considerably, demonstrating the impact of the alleged false statements.

How Investors Can Get Involved

Investors who acquired PepGen securities during the class action period have a window until August 8, 2025, to apply to be appointed as Lead Plaintiff in this case. Interested participants can obtain details about the complaint through Pomerantz's official website and reach out directly for more information.

Pomerantz LLP has been a leader in corporate, securities, and antitrust class litigation for over 85 years and has a significant track record of advocating for the rights of victims involved in securities fraud. The law firm has successfully recovered billions of dollars for its clients, emphasizing its commitment to pursuing justice for those harmed by corporate misconduct. For more information, investors can contact Danielle Peyton at (646) 581-9980.|