SAN FRANCISCO, March 11, 2020 /PRNewswire/ -- Hagens Berman urges Allakos Inc. (NASDAQ: ALLK) investors who have suffered significant losses to submit their losses now. A securities fraud class action has been filed against the Company and certain investors may have valuable claims.
Allakos (ALLK) Securities Class Action:
The complaint alleges Defendants misled investors about the Company's Phase 2 clinical trial (the "ENIGMA Trial") for its flagship AK002 drug intended to treat patients with certain stomach diseases. Specifically, Defendants misrepresented and concealed that: (1) the ENIGMA Trial was poorly designed and not well-controlled; (2) Allakos had cherry-picked timeframes to engineer results for the ENIGMA Trial; (3) Allakos used superficial endpoints in the ENIGMA Trial relative to FDA guidance; (4) Allakos inaccurately reported the number of adverse incidents that occurred during the ENIGMA Trial; and (5) the Company failed to report other key data from the ENIGMA Trial.
According to the complaint, investors began to learn the truth on Dec. 18, 2019, when Seligman Investments published a scathing report entitled, "A Suspect Biotech with a Phase 2 Farce, Incredulous Trial Investigators, and Warning Signs of Potential Fraud," identifying several concerns with the ENIGMA Trial. Among other things, Seligman's 215-page report concluded that the ENIGMA Trial results "are compromised by 1) glaring omissions, 2) cherry-picked measures, and 3) statistical gimmicks and obfuscation." On this news, Allakos shares declined $13.25, or about 10%, on Dec. 18, 2019, wiping out over $1 billion in market capitalization.
"We're focused on investors' losses and whether Allakos misrepresented the conditions and results of its ENIGMA Trial," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Allakos and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Allakos should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP