The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Allakos Inc. (“Allakos” or the “Company”) (NASDAQ: ALLK) securities during the period from August 5, 2019 through December 17, 2019. Investors have until May 11, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Allakos failed to disclose that: (i) The Company’s ENIGMA Trial for its flagship drug, AK002, was poorly designed; (ii) Allakos cherrypicked timeframes to engineer results for the ENIGMA trial; (iii) Allakos used superficial endpoints in the ENIGMA Trial relative to FDA guidance; (iv) Allakos misrepresented the number of adverse incidents that occurred during the ENIGMA Trial; (v) the ENIGMA Trial was not well-controlled; and (vi) Allakos failed to report key data from the ENIGMA Trial.
On December 18, 2019, Seligman Investments published a report entitled “A Suspect Biotech with a Phase 2 Farce, Incredulous Trial Investigators, and Warning Signs of Potential Fraud.” The article identified several concerns regarding the AK002 Phase 2 trial, including poor controls and Allakos’ role in running the study itself, which rendered the ENIGMA trial essentially unblinded and trial results that were compromised by glaring omissions, cherrypicked measures, and statistical gimmicks and obfuscation.
On this news, shares of Allakos fell $13.25 per share, or 9.9%, to close at $119.28 on December 18, 2019.
If you acquired Allakos securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.