PepGen Investors: Act Now to Recover Losses from Securities Fraud Lawsuit

PepGen Inc. (NASDAQ: PEPG) faces a growing securities fraud lawsuit alleging that the company misled investors about the safety and efficacy of its experimental Duchenne muscular dystrophy (DMD) drug, PGN-EDO51, and the viability of its Phase 2 clinical trial, the CONNECT2 study. The case, which could redefine the company's future and offer recovery opportunities for affected investors, hinges on material misstatements and omissions that artificially inflated the stock price. With a critical deadline of August 8, 2025, for investors to join the class action, here's what you need to know.

Legal Basis: SEC Violations and Material Misstatements

The lawsuit, filed under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, accuses PepGen of making false and misleading statements between March 7, 2024, and March 3, 2025. Key violations include:
1. Overstated Efficacy: PepGen claimed PGN-EDO51 achieved dystrophin protein production levels sufficient to meet regulatory and clinical benchmarks. However, interim data revealed only 0.61% dystrophin production, far below the 1% threshold investors were led to expect. This discrepancy caused a 32.69% stock plunge in July 2024.
2. Flawed CONNECT2 Study: The company downplayed safety risks and regulatory hurdles. The FDA placed a clinical hold on the U.S. trial in December 2024, citing unresolved safety issues, while Health Canada halted dose escalation in the parallel Canadian trial (CONNECT1) due to kidney function declines. PepGen later admitted the CONNECT2 study was never dosed and permanently discontinued PGN-EDO51 in May 2025 after concluding it lacked meaningful clinical benefit.
3. Omissions of Critical Risks: Investors were not adequately warned about the drug's failure to meet dystrophin targets or the likelihood of regulatory rejection, leading to an artificially inflated stock price that dropped 73% from its March 2024 peak by January 2025.

The Financial Toll: Stock Declines and Investor Losses

The lawsuit seeks compensation for investors who purchased shares during the class period. The stock's trajectory reflects the damage caused by PepGen's misstatements:
- July 2024: Dystrophin data disclosure triggered a drop to $11.43.
- January 2025: Safety concerns in the CONNECT1 trial led to a 21.74% decline.
- March 2025: The voluntary pause of the CONNECT2 study caused an 18.86% plunge.
- May 2025: The admission of PGN-EDO51's failure drove the stock to a low of $1.44, erasing nearly $800 million in market value.

Class Action Opportunity: Act Before August 8, 2025

Investors who purchased PepGen securities between March 7, 2024, and March 3, 2025, are eligible to join the class action. The lead plaintiff deadline is August 8, 2025, meaning those seeking to maximize recovery must act swiftly. Key steps:
1. Consult a Law Firm: Firms like The Rosen Law Firm and The Gross Law Firm are representing investors. Contact them for guidance on submitting claims.
2. Document Transactions: Compile records of purchases during the class period to prove eligibility.
3. Avoid Missing the Deadline: Delaying could forfeit eligibility, even if losses are substantial.

Why This Matters for Investors

PepGen's case underscores the risks of biotech investments reliant on unproven therapies. The lawsuit highlights the importance of scrutinizing clinical trial data, regulatory interactions, and transparency in disclosures. For investors, this is not just about recovery—it's about holding companies accountable for misleading claims that distort market values.

Strategic Advice

• Join the Class Action: Even small holdings may qualify for compensation.
• Diversify Biotech Exposure: Avoid overconcentration in single-drug candidates.
• Monitor Regulatory Milestones: FDA holds and clinical trial updates are critical red flags.

Conclusion

PepGen's collapse from DMD drug hype to therapeutic failure offers a cautionary tale. The class action lawsuit provides a rare chance for investors to recover losses from a company that allegedly prioritized speculation over science. With the August 8 deadline looming, affected investors must act decisively to secure their rights.

For more information or to submit a claim, contact The Rosen Law Firm at 866-767-3653 or The Gross Law Firm at 855-846-6529. Time is running out—don't let this opportunity pass.