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

Pomerantz Law Firm Takes Action Against PepGen Inc.

On July 27, 2025, Pomerantz LLP announced a significant legal development that has captured the attention of investors and industry professionals alike. The law firm has filed a class action lawsuit against PepGen Inc., a clinical-stage biopharmaceutical company focused on developing oligonucleotide therapeutics for treating severe neuromuscular and neurologic diseases, along with certain executives of the company. The suit, filed in the United States District Court for the Eastern District of New York, is officially docketed as 25-cv-03221.

Background on PepGen Inc.

PepGen, listed on NASDAQ under the ticker symbol PEPG, is well-known for its advancements in biopharmaceutical innovations, particularly regarding Duchenne muscular dystrophy (DMD). The company's leading product candidate, PGN-EDO51, aims to provide a novel therapeutic approach to DMD, which stems from a mutation in the dystrophin gene affecting muscle function.

The lawsuit encompasses all individuals and entities who purchased or acquired PepGen securities between March 7, 2024, and March 3, 2025, referred to as the "Class Period." The plaintiffs in the class action are seeking damages purportedly caused by violations of federal securities laws, specifically targeting Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.

Allegations Against PepGen and Its Executives

The complaint reveals several critical allegations against PepGen and its officers. Throughout the class period, the defendants are accused of making misleading statements regarding the efficacy, safety, and regulatory oversight of PGN-EDO51 and the concurrent clinical trials, namely CONNECT1 and CONNECT2.

Key points raised in the lawsuit include:
1. Misrepresentation of Efficacy: Defendants are alleged to have falsely claimed that PGN-EDO51 was more effective and safer than was actually the case, leading investors to a false understanding of its clinical potential.
2. Connected Trials Concerns: Serious concerns regarding the CONNECT2 trial's safety and approval prospects were allegedly concealed from investors, including indications that the trial might be halted due to safety issues reported to the FDA.
3. Exaggerated Prospects: Investors were reportedly misled into believing that PepGen's products would perform better than they realistically could, resulting in significant financial losses when these claims were unveiled as unfounded.

Clinical Developments and Their Implications

The class action gained significant traction following a series of announcements from PepGen indicating adverse developments related to the clinical trials of PGN-EDO51. Among these was the poorly received news on July 30, 2024, regarding the company's reporting of clinical data from the CONNECT1 study, where results fell short of benchmarks, raising alarms among market analysts and investors alike. The stock price dropped markedly, reflecting the market's reaction to the disappointing news.

Moreover, the FDA's clinical hold notice issued on December 16, 2024, regarding the CONNECT2 study further exacerbated the situation for PepGen. The notice was attributed to potential risks that could impact patient safety, indicating severe deficiencies in the trial's design as perceived by regulatory bodies.

Following this series of negative disclosures, the stock price continued to tumble, linking investors' losses directly to the misinformation purportedly shared by PepGen's executives.

Call to Action for Investors

As it stands, investors who were involved with PepGen's securities during the specified class period have a window of opportunity until August 8, 2025, to take action. Individuals are encouraged to consult with Pomerantz LLP to determine their eligibility to become Lead Plaintiffs in the ongoing case.

Interested parties can acquire a copy of the complaint or further details by visiting Pomerantz's website. Queries can also be directed to Danielle Peyton at 646-581-9980, or via email. This ongoing legal battle is a crucial development for stakeholders involved in PepGen and may influence future corporate governance and transparency in biotech ventures.

Conclusion

The Pomerantz lawsuit highlights broader issues within the pharmaceutical industry related to transparency, accountability, and investor protection. As this case unfolds, it will be interesting to observe how the legal proceedings might reshape the operational landscape for PepGen and potentially other biotech firms grappling with similar challenges.