#United States #New York #Securities Class Action #Pomerantz LLP #PepGen Inc.

Pomerantz Law Firm Initiates Class Action Against PepGen Inc.

On July 12, 2025, Pomerantz LLP, a renowned legal firm, announced the filing of a class action lawsuit against PepGen Inc. (NASDAQ: PEPG) and several of its executives. This legal action has been initiated in the United States District Court for the Eastern District of New York, officially registered under the docket number 25-cv-03221. The lawsuit seeks to represent all individuals and entities, excluding the defendants, who purchased or acquired PepGen securities between March 7, 2024, and March 3, 2025. The plaintiffs aim to recover damages arising from alleged violations of federal securities laws, alongside seeking remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, along with Rule 10b-5.

Background on PepGen Inc.

PepGen is recognized as a clinical-stage biotechnology firm, primarily engaged in developing oligonucleotide therapeutics aimed at treating severe neuromuscular and neurologic diseases. The leading candidate from PepGen, PGN-EDO51, is designed specifically for the treatment of Duchenne muscular dystrophy (DMD), a genetic condition that leads to progressive muscle degeneration and weakness. DMD arises from mutations in the dystrophin gene, affecting dystrophin protein production, a crucial component for muscle function.

PepGen's innovative therapeutic, PGN-EDO51, was engineered to skip exon 51 of the dystrophin transcript, thus providing a path for approximately 13% of DMD patients to produce a truncated yet functional dystrophin protein. This candidate was undergoing evaluation in two pivotal Phase 2 clinical trials, known as CONNECT1-EDO51 and CONNECT2-EDO51.

Allegations and Developments

Throughout the class period, the defendants are accused of making materially misleading statements regarding the business, operations, and future prospects of PepGen. Allegations include that PGN-EDO51 was less effective and safe than what was represented to investors, and that the CONNECT2 study faced significant risks which jeopardized its approval by the U.S. Food and Drug Administration (FDA).

On July 30, 2024, PepGen reported what were described as positive clinical data from the CONNECT1 study. However, subsequent analysis indicated the outcomes were below market expectations, leading to a significant drop in share price. An analyst from Stifel commented on the subpar results, which did not meet PepGen's anticipation, contributing to a notable decline of 32.69% in stock price just a day after the announcement.

Further troubles arose when PepGen reported receiving a clinical hold notice from the FDA on December 16, 2024. This notice resulted from the FDA's concerns regarding potential risks in the CONNECT2 study. Following this announcement, the stock saw another decline of 3.63%.

By January 29, 2025, updates regarding safety concerns in the CONNECT1 study were released, detailing significant safety issues that hindered further participant enrollment. This revelation led to a 21.74% drop in stock value. When PepGen decided to temporarily halt the CONNECT2 study on March 4, 2025, the repercussions were severe, further pushing shares down by 18.86%.

On about May 28, 2025, PepGen acknowledged that PGN-EDO51 failed to achieve target dystrophin levels in the CONNECT1 study leading to the discontinuation of its DMD programs, marking a low point for the company within a year fraught with challenges.

Investor Compensation

For investors who purchased PepGen securities during the specified class period, the deadline to request their appointment as Lead Plaintiff is coming up on August 8, 2025. Interested parties are encouraged to reach out to the firm for deeper insights and relevant documentation regarding this class action lawsuit.

Pomerantz LLP continues to stand as a leading firm in corporate and securities litigation, having successfully recovered billions on behalf of investors affected by fraudulent practices and corporate misconduct. For more details, visit Pomerantz Law Firm.

This unfolding situation underscores the ongoing uncertainties surrounding biotechnology investments, particularly in the high-stakes arena of drug development for severe medical conditions like DMD.