RADNOR, Pa., Dec. 3, 2015 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Zafgen, Inc. (Nasdaq: ZFGN) ("Zafgen" or the "Company") on behalf of purchasers of the Company's securities between January 12, 2015 and October 16, 2015, inclusive (the "Class Period").
For additional information about this lawsuit, or to request information about this action online, please visit http://www.ktmc.com/new-cases/zafgen-inc.
Zafgen is a pharmaceutical company whose valuation is closely tied to the value of a single drug – beloranib (an anti-obesity treatment designed to make the body produce less fat and burn off excess fat as fuel).
The Complaint alleges that Zafgen and certain of its executive officers made a series of false and misleading statements to investors 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 over 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. However, Zafgen failed to disclose to investors at that time 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 an additional $10.66 per share, or over 50 percent, to close on October 16, 2015 at $10.36 per share.
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 (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299–7706 or (610) 667–7706, or via e-mail at email@example.com
Zafgen shareholders who purchased their securities during the Class Period may, no later than December 21, 2015, petition the Court to be appointed as a lead plaintiff representative of the class.
A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. In order to be appointed as a 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 in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
CONTACT: Kessler Topaz Meltzer & Check, LLP Darren J. Check, Esq. D. Seamus Kaskela, Esq. Adrienne O. Bell, Esq. 280 King of Prussia Road Radnor, PA 19087 (888) 299-7706 (610) 667-7706 firstname.lastname@example.org
SOURCE Kessler Topaz Meltzer & Check, LLP