A lawsuit was filed on behalf of investors in Frequency Therapeutics, Inc. (NASDAQ:FREQ) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 06/18/2021 -- An investor, who purchased shares of Frequency Therapeutics, Inc. (NASDAQ: FREQ), filed a lawsuit over alleged violations of Federal Securities Laws by Frequency Therapeutics, Inc.
Investors who purchased shares of Frequency Therapeutics, Inc. (NASDAQ: FREQ) have certain options and for certain investors are short and strict deadlines running. Deadline: August 2, 2021. NASDAQ: FREQ investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Woburn, MA based Frequency Therapeutics, Inc., a clinical-stage biotechnology company, focuses on harnessing the body's innate biology to repair or reverse damage caused by a broad range of degenerative diseases.
On or around October 2, 2019, Frequency Therapeutics, Inc conducted its initial public offering ("IPO"), selling 6,000,000 shares of common stock priced at $14.00 per share.
Frequency Therapeutics, Inc. began its Phase 2a trial for FX-322 in October 2019. The trial results failed to live up to the Company's expectations, as they revealed no discernable difference between FX-322 and the placebo. However, the Company continued to conduct the trial and released positive statements in earnings calls, press releases, SEC filings, and pharmaceutical presentations about FX-322's potential.
During this period, CEO David Lucchino sold over 350,000 shares valued near $9 million in the months prior to releasing the results of the Phase 2a trial.
On March 23, 2021, Frequency announced the topline, day-90 data from its FX-322 Phase 2a study (FX-322-202). Frequency Therapeutics, Inc disclosed that "[t]he interim results show that four weekly injections in subjects with mild to moderately severe sensorineural hearing loss (SNHL) did not demonstrate improvements in hearing measures versus placebo."
The plaintiff claims that between November 16, 2020, and March 22, 2021, the defendants made false and/or misleading statements and/or failed to disclose that Frequency's development and commercialization of a hearing loss treatment titled "FX-322" was not producing the results Frequency desired, that FX-322's ongoing clinical study was not as positive as Frequency portrayed, and that as a result of the foregoing, defendants' positive statements about Frequency's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Those who purchased shares of Frequency Therapeutics, Inc. (NASDAQ: FREQ) have certain options and should contact the Shareholders Foundation.
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