Hearing loss drug developer Frequency Therapeutics (NASDAQ: FREQ) is the subject of a growing number of security fraud accusations on behalf of investors.
Earlier this year, things were looking up for the company’s lead product candidate, FX-322. But on March 23, Frequency Therapeutics announced that interim results suggested that FX-322 was not effective at improving mild to moderately severe sensorineural hearing loss in a Phase 2a study compared to placebo. Previous results from a smaller study had been more positive.
The company’s stock fell from a high of $55.01 on Feb. 19 to $9.55 in mid-day trading on June 15.
Among the law firms filing lawsuits against Frequency Therapeutics is Robbins LLP (San Diego), which recently filed a class-action lawsuit for purchasers of Frequency Therapeutics stock between Nov. 16, 2020 and March 22. That lawsuit alleges that the company misrepresented its FX-322 experimental drug in earnings calls, press releases, SEC filings and pharmaceutical presentations before March 23. Also, before that date, the company’s CEO David Lucchino sold more than 350,000 shares of its stock, netting more than $10.5 million.
Other law firms that are pursuing similar class action litigation against Frequency Therapeutics include the following:
- Berger Montague (Philadelphia).
- Bragar Eagel & Squire (New York City).
- Portnoy Law Firm (Los Angeles).
- Schall Law Firm (Los Angeles).
- Robbins Geller Rudman & Dowd (San Diego).
- Levi & Korsinsky (New York City).
- Bronstein, Gewirtz & Grossman (New York City).
- Frank R. Cruz (Los Angeles).
- Howard G. Smith (Bensalem, Pa.).
- Glancy Prongay & Murray LLP (Los Angeles).
- Law Offices of Vincent Wong (New York City).
- Klein Law Firm (New York City).
A Frequency Therapeutics spokesperson said the firm has no comment on this subject.
Frequency Therapeutics has drawn on research from noted scientist Robert Langer of MIT and serial entrepreneur Jeff Karp. Langer serves on the board of the company.