SAN DIEGO & REDWOOD CITY, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that it is investigating Allakos, Inc. (NYSE: ALLK) for alleged violations of the Securities Exchange Act of 1934 and whether the Company's officers and directors breached their fiduciary duties to shareholders. Allakos is a clinical stage biopharmaceutical company that focuses on developing therapeutic antibodies targeting allergic, inflammatory, and proliferative diseases.
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Allakos, Inc. (ALLK) Accused of Releasing Compromised Trial Results
On August 5, 2019, Allakos announced that its drug AK002 had met all pre-specified primary and secondary endpoints in its Phase 2 clinical trial (the "ENIGMA Trial"). Then, on December 18, 2019, Seligman Investments published a report identifying several concerns with the ENIGMA trial, including but not limited to "flagrant nepotism in key clinical roles," "poor controls as well as Allakos' role in running the study itself," and trial results that were compromised by ample use of steroids, glaring omissions, cherry-picked measures, and statistical gimmicks and obfuscation. Since this news, shares of Allakos have precipitously declined and currently trade at around $55.00, representing a 60% decline from its class period high of $137.73.
Allakos, Inc. (ALLK) Shareholders Have Legal Options
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