Faruqi & Faruqi, LLP Leads Investigation into PepGen Inc. Securities Fraud Case

Investors Urged to Join PepGen Class Action Lawsuit

Faruqi & Faruqi, LLP, a prominent national securities law firm renowned for its commitment to investor rights, is currently pursuing an investigation into potential claims against PepGen Inc. (NASDAQ: PEPG). The firm has announced that investors who have suffered losses exceeding $50,000 while holding shares in PepGen between March 7, 2024, and March 3, 2025, should reach out to discuss their options. The case highlights a crucial deadline for investors looking to take a stand as lead plaintiffs in a federal securities class action lawsuit that has already been initiated against PepGen.

Background of the Case

The investigation revolves around allegations that PepGen and its executives misled investors regarding the safety and effectiveness of its drug, PGN-EDO51. It is claimed that the company failed to adequately disclose significant concerns surrounding the drug's development and regulatory approval processes, particularly regarding the related CONNECT3 clinical study.

On July 30, 2024, PepGen announced what they claimed to be "positive clinical data" from PGN-EDO51 in their ongoing CONNECT1 study. However, the results were quickly scrutinized by analysts for their underwhelming performance. The reported increase in dystrophin levels—a protein crucial for muscle function—was found to be below the expected thresholds, leading to a notable decline in the firm's stock price by over 32.69%. Clients and analysts alike expressed disappointment over the findings, reflecting concerns about the drug's viability and safety profile.

Further complicating matters, on December 16, 2024, PepGen disclosed that it had received a clinical hold from the U.S. Food and Drug Administration (FDA) regarding its application to initiate the CONNECT2 clinical trial. This hold signified regulatory apprehensions about potential risks to patients involved in the study and indicated other deficiencies within the study's framework. In the aftermath of this announcement, PepGen's stock saw another drop, underscoring rising investor anxiety.

In early 2025, further troubling news surfaced as PepGen issued a release indicating that a dosage participant in the CONNECT1 study had experienced adverse effects, prompting health agencies to demand more information before new enrollments could proceed. The stock price plummeted again, reinforcing the narrative that the company’s projections may have been overly optimistic—if not unjustifiably so.

The Role of Faruqi & Faruqi, LLP

The critical role of Faruqi & Faruqi, LLP as a partner in handling this lawsuit stems from their proven track record of achieving favorable settlements for investors. Since its establishment in 1995, the firm has successfully recovered substantial amounts for those victimized by securities fraud. They are now encouraging anyone affected by PepGen's alleged misrepresentation to engage with them regarding their legal recourse. Interested parties can reach out directly to partner Josh Wilson through specified contact channels, or alternatively can visit their website for more information.

Furthermore, potential plaintiffs are reminded that the deadline for assuming the lead plaintiff role in this ongoing litigation is August 11, 2025. The lead plaintiff stands as a representative to guide and manage the case on behalf of all members involved in the class.

Consequently, anyone involved in or knowledgeable about PepGen’s operations is also invited to contribute any relevant information, enriching the case and maximizing the opportunity for investor protection. The law firm emphasizes that all communications will be kept confidential, ensuring the safety and privacy of their clients.

As a pivotal moment for shareholder advocacy emerges, investors must act swiftly to protect their rights and seek justice for their financial losses. This case encapsulates broader issues in corporate governance and the need for transparency in clinical research, especially within the pharmaceutical sector.

Stay updated with the latest developments in this case through Faruqi & Faruqi's platforms, including LinkedIn, X, and Facebook. Investors are encouraged to take proactive steps to safeguard their interests and ensure accountability from PepGen, as investor rights remain paramount in this evolving investigation.