NEW YORK, Dec. 03, 2018 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of Zafgen, Inc. (“Zafgen” or the “Company”) (NASDAQ: ZFGN). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Zafgen and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On November 26, 2018, Zafgen announced receipt of a letter from the U.S. Food and Drug Administration (“FDA”) placing a clinical hold on the Investigational New Drug Application for its first U.S. clinical trial of ZGN-1061, the Company’s second-generation, investigational MetAP2 inhibitor currently in development for the treatment of type 2 diabetes. Zafgen stated that “[t]he FDA cited the possibility of cardiovascular (CV) safety risk based on the Company’s prior compound and outlined multiple potential paths for moving forward, including nonclinical or clinical options, to address these concerns in the ongoing development of ZGN-1061”, and further advised investors that “[t]he Company plans to assess these options and request a Type A meeting with the [FDA] to discuss next steps with the program.”
Following this disclosure, Zafgen’s stock price fell $3.69 per share, or 40.55%, to close at $5.41 per share on November 26, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 9980