Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of Allakos Inc. (“Allakos” or the “Company”) (NASDAQ: ALLK) between August 5, 2019 and December 17, 2019 (the “Class Period”)
If you purchased Allakos securities, and/or would like to discuss your legal rights and options, please click “Join Class Action” above.
New York, New York — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of Allakos Inc. (“Allakos” or the “Company”) (NASDAQ: ALLK) between August 5, 2019 and December 17, 2019 (the “Class Period”). The lawsuit was filed in the United States District Court for the Northern District of California and alleges violations of the Securities and Exchange Act of 1934.
The Complaint alleges that the Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) The Company’s ENIGMA Trial for its flagship drug, AK002, was poorly designed; (2) Allakos cherrypicked timeframes and to engineer results for the ENIGMA trial; (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’ statements about Allakos’ business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On December 18, 2019, Seligman Research (“Seligman”) published a report characterizing Allakos as “A Suspect Biotech with a Phase 2 Farce, Incredulous Trial Investigators, and Warning Signs of Potential Fraud.” In addition to many other issues, the Seligman report alleged the Company of having “buried the results for the two AK001 studies it conducted, but our research indicates a debacle.”
On this news, Allakos’s stock price fell $13.25 per share, or 10%, to close at $119.28 on December 18, 2019.
If you wish to serve as lead plaintiff, you must move the Court no later than May 11, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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