Class Action Lawsuit Targets PepGen Inc. and Its Executives
Class Action Lawsuit Targets PepGen Inc. and Its Executives
Pomerantz LLP has announced that a class action lawsuit has been filed against PepGen Inc. (NASDAQ: PEPG) and certain of its officers. This lawsuit aims to represent all individuals and entities that purchased PepGen securities during the Class Period, which seeks to recover damages caused by violations of federal securities laws.
Details of the Class Action
The class action, currently filed in the U.S. District Court, stems from allegations that PepGen and its executives misrepresented the clinical and commercial viability of the company's lead product candidate, PGN-EDO51. Investors are encouraged to take action before the deadline to seek appointment as Lead Plaintiff. Those who participated in the stock purchase may obtain more information and discuss their involvement.
About PepGen and Its Lead Product Candidate
PepGen is principally focused on developing innovative oligonucleotide therapeutics targeting severe neurologic and neuromuscular disorders. Its flagship product, PGN-EDO51, is particularly aimed at treating Duchenne muscular dystrophy (DMD), a debilitating genetic disorder known for causing progressive muscle degeneration.
DMD arises from mutations in the dystrophin gene, leading to decreased levels of the dystrophin protein, which are crucial for muscle stability. PepGen claims that PGN-EDO51 targets exon 51 of the dystrophin gene transcript. By doing so, it aims to enable the production of a truncated but functional dystrophin protein, potentially serving 13% of DMD patients.
Clinical Trials and Allegations Against the Company
PepGen has been conducting two Phase 2 clinical trials, known as CONNECT1 and CONNECT2, to assess the effectiveness of PGN-EDO51 in DMD. Throughout this time, the company reiterated its commitment to advancing these trials, promoting PGN-EDO51 as a groundbreaking treatment option.
However, the lawsuit asserts that during the Class Period, Defendants issued misleading statements about the safety and efficacy of PGN-EDO51. Particularly, they allegedly misrepresented the ongoing CONNECT studies, failing to disclose critical safety concerns and the potential for the CONNECT2 study being halted.
Specifically, it has been claimed that PGN-EDO51's effectiveness was overstated, and that trials faced unauthorized issues that could endanger patient safety and impede the path to regulatory approval.
Findings from the Trials
On July 30, 2024, PepGen released preliminary data from the CONNECT1 trial, highlighting that PGN-EDO51 generated a mean absolute dystrophin level that disappointed investors and analysts alike. Following this, PepGen's stock saw a substantial decline in value.
In December 2024, the FDA placed a clinical hold on the company’s application to commence the CONNECT2 study after expressing concerns regarding patient safety. The resulting news led to further decreases in PepGen’s stock price.
Again in January 2025, alarming updates about safety observations in the CONNECT1 study and communication from regulatory bodies about the CONNECT2 study raised more red flags, triggering a drop in stock prices. Subsequently, the company announced a voluntary pause of the CONNECT2 study in March 2025 and further disappointing updates regarding the dystrophin levels achieved in May 2025 led to a complete halt of its DMD programs.
These events have raised significant concerns among investors, as the ongoing class action lawsuit highlights the potential failure of PepGen to uphold its fiduciary duties to its stakeholders. The claims stand in stark contrast to the bullish projections communicated by the company's representatives regarding PGN-EDO51 and its associated trials.
Pomerantz LLP's Role and Expertise
Pomerantz LLP is recognized for its extensive experience in representing shareholders in complex securities litigation. With over 85 years of dedication to protecting the rights of investors, the firm's commitment to addressing corporate misconduct has resulted in substantial recoveries for class members.
Individuals looking to engage with Pomerantz regarding the class action or seeking more information are encouraged to connect through the provided contact methods. Prospective class members are also invited to join the action by consulting the relevant forms and resources provided by the firm.
Frequently Asked Questions
What is the primary allegation in the class action against PepGen?
The lawsuit claims that PepGen and its executives made materially false and misleading statements regarding the effectiveness of its lead product, PGN-EDO51, and the status of clinical trials.
Who can participate in the class action lawsuit?
All individuals and entities who purchased PepGen securities during the Class Period may be eligible to participate in the class action.
How can I become a Lead Plaintiff in this case?
If you purchased securities during the Class Period, you need to file a motion with the court to be appointed as a Lead Plaintiff by the provided deadline.
What led to the decline in PepGen's stock price?
PepGen's stock price declined following the release of disappointing clinical trial data and regulatory issues raised by the FDA regarding patient safety.
Who is Pomerantz LLP?
Pomerantz LLP is a well-established law firm specializing in securities class action litigation and has a long history of advocating for investor rights.
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