SAN FRANCISCO, Dec. 02, 2015 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds investors with losses over $100,000 of the December 21, 2015 lead plaintiff deadline in the securities fraud class action lawsuit filed against Zafgen, Inc. (NASDAQ:ZFGN) related to Zafgen’s announcement that clinical trials for the drug beloranib were halted following a patient’s death.
If you have sizeable losses in your investments in ZFGN securities during the Class Period, contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling (510) 725-3000, emailing ZFGN@hbsslaw.com or visiting http://www.hbsslaw.com/cases/zfgn. The case was filed in the U.S. District Court for the District of Massachusetts on behalf of shareholders who purchased ZFGN securities between January 12, 2015 and October 16, 2015.
Zafgen is a biopharmaceutical company that develops drugs which target obesity and metabolic disorders. Their flagship drug is beloranib, which was in the midst of phase 3 clinical trials when, on October 16, 2015, the Company disclosed that it received verbal notice from the FDA that clinical trials must be placed on hold. The hold was announced after the death of a patient who was enrolled in a beloranib trial. News reports at the time also alleged that the company disclosed that six patients in previous and current trials reported thrombotic adverse events, including blood clots in the legs and lungs. On this news, the Company’s stock price fell $10.66, or more than 50%, to close at $10.36 on October 16, 2015.
The complaint against Zafgen alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business and operations. Specifically, the complaint alleges that defendants concealed the facts that: “(i) the patient who died was receiving beloranib; 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.” When these facts came to light, investors were harmed by the precipitous drop in the price of Zafgen shares.
If you lost more than $100,000 in your investments in ZFGN securities between January 12, 2015 and October 16, 2015, inclusive, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation.
Whistleblowers: Persons with non-public information regarding ZFGN should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at (510) 725-3000 or email ZFGN@hbsslaw.com.
Hagens Berman is headquartered in Seattle, Washington with offices in nine cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com. Read the Firm’s Securities Newsletter at http://www.hbsslaw.com/hagens-berman-investor-fraud-center/securitites-newsletter, and visit the blog at www.meaningfuldisclosure.com. For the latest news visit http://www.hbsslaw.com/cases/pressreleases or follow us on Twitter at @classactionlaw.
Contact: Reed Kathrein, (510) 725-3000
Source:Hagens Berman Sobol Shapiro LLP