Pomerantz Law Firm Files Class Action Against PepGen Inc. Over Securities Violations

Pomerantz LLP has officially announced the filing of a class action lawsuit against PepGen Inc., a clinical-stage biotechnology company, as well as certain of its officers. This lawsuit has been initiated in the United States District Court for the Eastern District of New York, under the docket number 25-cv-03221.

Background of the Case

The class action encompasses all individuals and entities, apart from the defendants themselves, that purchased or acquired PepGen securities during the period from March 7, 2024, to March 3, 2025. The purpose of the lawsuit is to recover damages that resulted from what is alleged to be violations of federal securities laws by the defendants. Specifically, the class action seeks remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 that was promulgated under this act.

Investors who purchased PepGen securities during the specified period have until August 8, 2025, to request that the court appoint them as Lead Plaintiff for the class. More information and a copy of the Complaint can be accessed through the Pomerantz Law Firm’s website. For further inquiries, interested parties can contact Danielle Peyton, either by phone or email, noting that providing a mailing address, telephone number, and number of shares purchased is encouraged for an effective inquiry.

PepGen’s Operations and Controversies

PepGen Inc. specializes in developing oligonucleotide therapeutics, primarily aimed at treating debilitating neuromuscular and neurological disorders. The company’s flagship product candidate, PGN-EDO51, targets Duchenne muscular dystrophy (DMD), a genetic condition that leads to progressive muscle degeneration. The innovative strategy employs a unique delivery peptide that aims to skip over a problematic section of the dystrophin transcript, effectively allowing for the production of a functional dystrophin protein, which is critical for muscle function.

At one point, PepGen invested significant resources into evaluating PGN-EDO51 through two Phase 2 clinical trials, known as CONNECT1 and CONNECT2. Throughout the period leading up to the filing of the lawsuit, the company and its officers were noted to have made a series of claims about the product’s potential clinical and regulatory success, as well as optimistic projections regarding the CONNECT studies.

However, the lawsuit claims that these statements were misleading and materially false. Evidence suggests that PGN-EDO51 may have been less effective and safe than what the defendants had portrayed to investors. Furthermore, it was alleged that the CONNECT2 study did not meet the necessary safety standards for U.S. Food and Drug Administration (FDA) approval, leading to a belated realization that the likelihood of halting the CONNECT2 study was high. This is claimed to misrepresent the clinical and commercial viability of PGN-EDO51 and exaggerate its prospects.