WILMINGTON, Del., Nov. 23, 2015 (GLOBE NEWSWIRE) -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, announced today that a securities fraud class action lawsuit has been filed in the U.S. District Court, District of Massachusetts, Case No. 15-cv-13618, on behalf of investors of Zafgen, Inc. (NASDAQ:ZFGN) (“Zafgen” or the “Company”) that held shares between January 12, 2015 and October 16, 2015 (the “Class Period”). If you purchased Zafgen securities during the Class Period, you may, no later than December 21, 2015, request that the Court appoint you lead plaintiff of the proposed class.
A copy of the complaint is available from Andrews & Springer LLC or the Court. If you would like to join the class action, please visit our website or contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
On October 14, 2015, Reuters confirmed that a patient in Zafgen’s Phase 3 trial of beloranib died. Zafgen failed to disclose, however, that the patient was receiving beloranib - not a placebo - and failed to disclose anything about thrombotic events in prior clinical trials.
Late in the day on October 15, 2015, the Food and Drug Administration informed Zafgen that beloranib had been placed on partial clinical hold. This forced Zafgen to reveal on October 16, 2015 that: (i) the patient who died was receiving beloranib - not a placebo; 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.
On October 21, 2015, a Zafgen shareholder filed a securities class action lawsuit against Zafgen. According to the lawsuit, during the Class Period, Zafgen made false and/or misleading statements and/or failed to disclose to investors that: (1) one participant in the beloranib Phase 3 study, who had died, was receiving beloranib and not a placebo; (2) while Zafgen had reported 2 thrombotic events in prior clinical studies, there had actually been 4 such events, as well as 2 additional thrombotic events in other ongoing studies; and (3) consequently, Defendants' statements about Zafgen's business, operations and prospects were false and misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
As a result of this news, Zafgen’s stock price fell more than 40% on high volume on October 16, 2015, causing shareholders to incur millions in losses and wiping out hundreds of millions of Zafgen’s market cap.
If you wish to serve as lead plaintiff, you must move the Court no later than December 21, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Craig J. Springer, Esq. at cspringer@andrewsspringer.com, or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.
Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.