Zafgen Inc (NASDAQ: ZFGN) Investor Securities Class Action Lawsuit 10/21/2015

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Company Name(s): 
Case Name: 
Zafgen Shareholder Class Action Lawsuit 10/21/2015
Case Status: 
Case Dismissed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the District of Massachusetts
Deadline To File for Lead: 
Case Dismissed: 

April 7, 2017 - The U.S. Court of Appeals for the First Circuit affirms the judgement of the district court.

August 12, 2016 - The lead plaintiffs filed a notice of appeal.

August 9, 2016 - The court granted defendants' motion to dismiss.

February 22, 2016 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Zafgen Inc (NASDAQ: ZFGN) common shares between June 19, 2014 and October 16, 2015. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between June 19, 2014 and October 16, 2015.

January 7, 2016 - Lead plaintiff and lead counsel were appointed.

December 21, 2015 - Lead plaintiff motions were filed.

October 21, 2015 - An investor in shares of Zafgen Inc (NASDAQ: ZFGN) filed a lawsuit in the U.S. District Court for the District of Massachusetts over alleged violations of Federal Securities Laws by Zafgen Inc in connection with certain allegedly false and misleading statements made between January 12, 2015 and October 16, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of Zafgen Inc (NASDAQ: ZFGN) common shares between January 12, 2015 and October 16, 2015, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that until October 16, 2015, Zafgen Inc had never disclosed any other thrombotic adverse events related to beloranib.

On October 14, 2015, Zafgen Inc issued a statement acknowledging the death of a patient in its ongoing double-blind, randomized, placebo-controlled Phase 3 bestPWS study of beloranib in Prader-Willi Syndrome.

The plaintiff claims that Zafgen Inc failed to disclose, however, that the patient was receiving beloranib (i.e., not a placebo) and failed to disclose anything about thrombotic events in prior clinical trials.

On October 15, 2015, the Food and Drug Administration (‘FDA”) informed Zafgen Inc that beloranib has been placed on partial clinical hold.

On October 16, 2015 Zafgen Inc announced that it received verbal notice on October 15, 2105 from the FDA that beloranib has been placed on partial clinical hold and that this partial clinical hold impacts ongoing or planned clinical trials, including ZAF-311 and ZAF-312. Zafgen Inc said that a partial clinical hold is an order that the FDA issues to delay or suspend part of a sponsor's clinical work requested under its investigational new drug (IND) application.

Shares of Zafgen Inc (NASDAQ: ZFGN) declined to as low as $10.90 per share on October 14, 2015, respectively $10.06 per share on October 16, 2015.

On October 22, 2015 Zafgen Inc announced a clinical update for beloranib, the Company's lead MetAP2 inhibitor product candidate. Zafgen Inc said that after review of its ongoing clinical trials, Zafgen Inc has elected to proceed with efficacy and safety data analysis and close the randomized portion of its Phase 3 ZAF-311 clinical trial of beloranib in patients with Prader-Willi syndrome (PWS) and its ZAF-203 Phase 2b clinical trial of beloranib in patients with severe obesity complicated by type 2 diabetes.

On October 22, 2015, NASDAQ: ZFGN shares closed at $10.67 per share.