NEW YORK, Oct. 23, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston 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 securities of Zafgen, Inc. (“Zafgen” or the “Company”) (Nasdaq:ZFGN) between January 12, 2015 and October 16, 2015 (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
The Complaint alleges that Defendants 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.
On October 15, 2015, the Food and Drug Administration placed a partial clinical hold on beloranib. On that news, 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. 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 Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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