Zafgen investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Zafgen is a pharmaceutical company whose valuation is closely tied to the value of a single drug –beloranib.
The Complaint alleges that Zafgen and certain of its executive officers made a series of false and misleading statements during the Class Period, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the defendants are alleged to have made a series of misrepresentations about thrombotic adverse events in Zafgen’s clinical trials of its leading drug candidate, beloranib.
Between October 12, 2015 and October 13, 2015, shares of Zafgen’ common stock declined $18.65 per share, or 54 percent, following rumors that a patient had died in an ongoing Phase 3 clinical trial of beloranib. On October 14, 2015, Zafgen confirmed that a patient in its Phase 3 trial of beloranib had died. At that time, Zafgen failed to disclose to investors that the patient was receiving beloranib (not a placebo), and further failed to disclose news about thrombotic events in prior clinical trials of beloranib.
On October 15, 2015, the Food and Drug Administration (“FDA”) informed Zafgen that beloranib was being placed on partial clinical hold. This action by the FDA caused Zafgen to make additional disclosures to investors on October 16, 2015, including that: (i) the patient who died was receiving beloranib; and (ii) there had been four thrombotic adverse events in prior clinical studies of beloranib (two more than previously reported), as well as two additional, previously undisclosed thrombotic events in ongoing studies, for a total of six thrombotic events out of 400 patients receiving beloranib (compared to zero thrombotic events in the approximately 150 patients treated with a placebo). Following this additional information from Zafgen, shares of the Company’s common stock declined $10.66 per share, or over 50 percent, to close on October 16, 2015 at $10.36 per share.
If you are a member of the class described above, you may no later than December 21, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706