NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Allakos Inc. (“Allakos” or the “Company”) (NASDAQ:ALLK) of the May 11, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Allakos stock or options between August 5, 2019 and December 17, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/ALLK. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Allakos securities between August 5, 2019 and December 17, 2019 (the “Class Period”). The case, Kim v. Allakos Inc. et al., No. 4:20-cv-01720 was filed on March 10, 2020, and has been assigned to Judge Jeffrey S. White.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the ENIGMA Trial was poorly designed; (2) Allakos cherrypicked timeframes and to engineer results; (3) Allakos used superficial endpoints in the ENIGMA Trial relative to FDA guidance; (4) Allakos misrepresented the number of adverse incidents that occurred during the ENIGMA Trial; (5) the ENIGMA Trial was not well-controlled; (6) Allakos failed to report key data from the ENIGMA Trial; and (7) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
On December 18, 2019, Seligman Investments published a report entitled “A Suspect Biotech with a Phase 2 Farce, Incredulous Trial Investigators, and Warning Signs of Potential Fraud,” which detailed several concerns regarding the Company's AK002 Phase 2 trial.
On this news, the Company's stock price fell from $132.53 per share on December 17, 2019 to $119.28 per share on December 18, 2019: a $13.25 or 10.00% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Allakos’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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