Safirstein Metcalf LLP Announces That A Class Action Has Been Filed Against Allakos, Inc. - ALLK

NEW YORK, May 08, 2020 (GLOBE NEWSWIRE) -- Safirstein Metcalf LLP announces that a class action has been filed on behalf of investors that purchased the securities of Allakos Inc. (“Allakos” or the “Company”) (ALLK) between August 5, 2019 and December 17, 2019 (the “Class Period”). The lawsuit was filed in the United States District Court for the Northern District of California and alleges violations of the Securities and Exchange Act of 1934.

If you purchased Allakos securities during the Class Period and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, or email info@SafirsteinMetcalf.com.

If you wish to serve as a lead plaintiff, you must move the Court no later than May 11, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.

The Complaint alleges that the Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) The Company’s ENIGMA Trial for its flagship drug, AK002, was poorly designed; (2) Allakos cherrypicked timeframes and to engineer results for the ENIGMA trial; (3) Allakos used superficial endpoints in the ENIGMA Trial relative to FDA guidance; (4) Allakos misrepresented the number of adverse incidents that occurred during the ENIGMA Trial; (5) the ENIGMA Trial was not well-controlled; (6) Allakos failed to report key data from the ENIGMA Trial; and (7) as a result, defendants’ statements about Allakos’ business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On December 18, 2019, Seligman Research (“Seligman”) published a report characterizing Allakos as “A Suspect Biotech with a Phase 2 Farce, Incredulous Trial Investigators, and Warning Signs of Potential Fraud.” In addition to many other issues, the Seligman report alleged the Company of having “buried the results for the two AK001 studies it conducted, but our research indicates a debacle.”

On this news, Allakos’s stock price fell $13.25 per share, or 10%, to close at $119.28 on December 18, 2019.

About Safirstein Metcalf LLP

Safirstein Metcalf LLP focuses its practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection. All of the Firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection.

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