#United States #New York #Pomerantz LLP #PepGen Inc #PGN-EDO51

Class Action Lawsuit Filed Against PepGen Inc.

On June 12, 2025, the renowned Pomerantz Law Firm announced the initiation of a class action lawsuit against PepGen Inc. and specific company officers. This case was officially filed with the United States District Court for the Eastern District of New York, and is recorded under docket number 25-cv-03221. The lawsuit aims to represent all individuals and entities, other than the defendants, who acquired PepGen securities between March 7, 2024, and March 3, 2025, inclusive.

The primary goal of this legal action is to seek damages for violations of the federal securities laws. The complaint alleges that PepGen and its officials engaged in misleading practices that painted an inaccurate picture of the company's status and prospects, specifically concerning their lead product candidate, PGN-EDO51. Stakeholders who have utilized PepGen securities during the specified period have been encouraged to seek Class Lead Plaintiff status before the deadline on August 8, 2025.

Background of PepGen and PGN-EDO51

PepGen Inc. operates in the biotechnology sector, focusing on creating oligonucleotide therapeutics for serious neuromuscular and neurological conditions. Their foremost candidate, PGN-EDO51, aims to treat Duchenne Muscular Dystrophy (DMD) — a genetic disease that leads to severe muscle degeneration. The product was engineered to enable the skipping of exon 51 within the dystrophin transcript, which is crucial for producing a functional dystrophin protein necessary for muscle health.

PepGen has been conducting two Phase 2 clinical trials, namely the CONNECT1-EDO51 and CONNECT2-EDO51 studies, to assess the effectiveness and safety of PGN-EDO51. However, the allegations in the complaint argue that at all significant junctures, PepGen's leadership misrepresented the clinical and commercial viability of this drug, therefore misleading investors.

Allegations in the Lawsuit

Throughout the class period, the lawsuit claims that PepGen's officials issued materially false information regarding the efficacy and safety of PGN-EDO51, as well as the integrity of CONNECT1 and CONNECT2 studies. Specifically, they assert that:
1. Ineffectiveness: PGN-EDO51 showed less effectiveness in increasing dystrophin production than previously depicted, damaging investor confidence.
2. Safety Concerns: The FDA flagged the CONNECT2 study for potential risks to trial participants, highlighting safety shortcomings that had not been communicated adequately by PepGen’s leadership.
3. Market Overstatement: Due to these underlying issues, the overall clinical, regulatory, and commercial prospects of PepGen's offerings were significantly overstated.

These misleading statements reportedly culminated in notable losses for investors.

The Impact of Released Information

On July 30, 2024, PepGen touted “positive clinical data” from the initial dosing of PGN-EDO51 in the ongoing CONNECT1 study. Despite this announcement, analysts noted that the dystrophin levels observed fell short of investors' expectations. Following this news, PepGen’s stock price plummeted by 32.69%, marking a significant loss for many.

Further disappointing updates followed when PepGen revealed concerns from the FDA on December 16, 2024, resulting in a 3.63% decrease in stock price. By late January 2025, continued safety concerns had led to a further significant drop of 21.74%. On March 4, PepGen announced a voluntary pause on the CONNECT2 study, triggering another stock price decline.

Ultimately, on May 28, 2025, the company declared that they would discontinue the development of PGN-EDO51 after failing to achieve target levels of dystrophin, highlighting the severity of the situation.

A Call to Affected Investors

Pomerantz LLP is recognized as a leading firm in corporate, securities, and antitrust class litigation, having recovered billions for their clients. They emphasize that anyone who purchased or acquired PepGen securities during the identified class period deserves to explore the potential for restitution.

For more information regarding this lawsuit and to obtain a copy of the complaint, affected persons should visit Pomerantz Law Firm or reach out to attorney Danielle Peyton at (646) 581-9980. Please provide your contact information and share details about your investment in PepGen for further assistance.

This lawsuit serves as a crucial reminder of the obligations companies hold to their investors. Legal actions like this play an important role in ensuring accountability within the corporate landscape and providing recourse for those impacted by potential wrongdoing.