LOS ANGELES--(BUSINESS WIRE)--The Wagner Firm announces that a class action has been filed on behalf of investors of Zafgen, Inc. (“Zafgen” or the “Company”) (Nasdaq: ZFGN) that purchased shares between January 12, 2015 and October 16, 2015, inclusive (the “Class Period”). Investors that have suffered a loss on their Zafgen securities holdings are encouraged to contact Avi Wagner, Esq. to discuss their legal rights prior to the December 21, 2015 lead plaintiff deadline.
On October 16, 2015, Zafgen disclosed that it received verbal notice from the U.S. Food and Drug Administration that the clinical trials involving beloranib, a drug designed to reduce hunger while stimulating the use of stored fat as an energy source, have been placed on partial hold following the death of a patient enrolled in a beloranib trial. Additionally, news reports allege that the company disclosed that six patients in previous and current trials reported thrombotic adverse events, including blood clots in the legs, and more seriously, in the lungs, and that all six patients were treated with beloranib. On this news, the Company’s stock price fell $10.66, or more than 50%, to close at $10.36 on October 16, 2015.
The complaint on behalf of investors alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business and operations. Specifically, the complaint alleges that defendants concealed the fact 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.” The lawsuit is seeking to recover damages on behalf of Zafgen investors that have suffered losses based on the recent declines in the stock’s trading price.
If you purchased shares of Zafgen, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Avi Wagner, Esquire, of The Wagner Firm, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 491-7949, by e-mail at firstname.lastname@example.org, or visit our website at http://thewagnerfirm.com.
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