Rigrodsky & Long, P.A. announces that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of all persons or entities that purchased the common stock of Zafgen, Inc., between January 12, 2015 and October 16, 2015, inclusive, alleging violations of the Securities Exchange Act of 1934 against the Company, and certain of its officers.
The complaint alleges that during the Class Period, defendants issued materially false and misleading public statements, and/or failed to disclose material information concerning adverse thrombotic events experienced by patients in the company’s clinical trials of its primary new drug product, beloranib. Specifically, the complaint alleges that defendants failed to disclose that one participant in the beloranib Phase 3 study, who had died, was receiving beloranib and not a placebo. In addition, the complaint alleges that 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.
The complaint further alleges that on October 15, 2015, the FDA placed a partial clinical hold on beloranib.
The price of the company’s common stock fell to a close of $10.36 per share on October 16, 2015, from a close of $21.02 per share on the previous day.
If you wish to serve as lead plaintiff, you must move the Court no later than December 21, 2015.