Allakos Inc.
| Company Name | Allakos Inc. |
| Stock Symbol | ALLK |
| Class Period | March 14, 2019 to December 17, 2019 |
| Lead Plaintiff Motion Deadline | May 11, 2020 |
On December 18, 2019, Seligman Research published a report alleging that the Company, among other issues, “buried the results for the two AK001 studies it conducted,” has “a checkered history of conducting small, low-credibility trials, marked by . . . discrepancies, omissions, cherry-picking, and other red flags,” and engaged in “[f]lagrant nepotism in key clinical roles.”
On this news, the Company’s stock price fell $13.25, or nearly 10%, to close at $119.28 per share on December 18, 2019, thereby injuring investors.
The complainit alleges that throughout the Class Period, Defendants 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.
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