RADNOR, Pa.–(BUSINESS WIRE)–The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California against Akero Therapeutics, Inc. (“Akero”) (NASDAQ: AKRO). The action charges Akero with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Akero’s materially misleading statements and omissions to the public, Akero’s investors have suffered significant losses.
If you suffered Akero losses, you may CLICK HERE or go to: https://www.ktmc.com/new-cases/akero-therapeutics-inc?utm_source=PR&utm_medium=link&utm_campaign=akro&mktm=r
You can also contact attorney Jonathan Naji, Esq. of Kessler Topaz by calling (484) 270-1453 or by email at [email protected]. The lead plaintiff deadline is June 25, 2024.
DEFENDANTS’ ALLEGED MISCONDUCT
Akero is a clinical stage drug development company which has yet to generate any revenues because the FDA has not approved any of its drug candidates for sale. To finance the company’s operations, Akero conducted two secondary stock offerings and one at-the-market stock offering during the Class Period, raising over $577 million. In order to successfully complete these offerings and raise part of the funding, Akero needed to develop and commercialize EFX, Akero’s lead product candidate, which was being developed to treat Nonalcoholic steatohepatitis (“NASH”) – a serious form of nonalcoholic fatty liver disease that is estimated to affect 17 million Americans.
The Class Period begins on September 13, 2022. On that date, Akero filed with the SEC a Form 8-K which reported the 24-week results for Akero’s Phase 2b HARMONY study of EFX in patients with pre-cirrhotic NASH. The Form 8-K and the attached press release stated that both the 50 milligram and 28 milligram doses of EFX had achieved statistical significance on primary and secondary histology endpoints after 24 weeks.
Two days later, on September 15, 2022, Akero filed with the SEC a prospectus supplement for a secondary offering of Akero common stock, pursuant to, the company eventually sold over 8.8 million shares of Akero common stock at $26 per share, raising gross proceeds of approximately $230 million.
Throughout the Class Period, Defendants repeatedly misled investors as to the true nature of the patient population that was being tested in Akero’s SYMMETRY study. Specifically, despite telling investors that the study’s patient population was limited to those with NASH induced cirrhosis (a fact that was key for data integrity and the likelihood of study success), for approximately 20% of those being tested Akero had not confirmed that the patients had NASH and that NASH had in fact caused their cirrhosis.
Akero shocked the market on October 10, 2023 when the company posted disappointing interim data from its Phase 2b SYMMETRY trial for EFX. Specifically, Akero stated that 22% (28mg) and 24% (50mg) of those on EFX and 14% on placebo indicated at least one stage improvement in fibrosis with no worsening of NASH at week 36, the trial’s primary endpoint, but that these changes were not statistically significant. In addition, Akero added that 12 patients, including 11 in EFX groups, discontinued the trial due to drug-related adverse events. On this news, Akero’s stock price fell $30.39 per share, or 62.61%, to close at $18.15 per share on October 10, 2023.
WHAT CAN I DO?
Akero investors may, no later than June 25, 2024, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Akero investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Akero, Klobus v. Akero Therapeutics, Inc., et al., Case No. 24-cv-02534, is filed in the United States District Court for the Northern District of California.
CLICK HERE TO SIGN UP FOR THE CASE or go to: https://www.ktmc.com/new-cases/akero-therapeutics-inc?utm_source=PR&utm_medium=link&utm_campaign=akro&mktm=r
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
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Contacts
Kessler Topaz Meltzer & Check, LLP
(484) 270-1453
280 King of Prussia Road
Radnor, PA 19087
[email protected]