LogicBio Therapeutics, Inc. (LOGC) Accused of Misleading Shareholders
According to the complaint for alleged violations of the Securities Exchange Act of 1934 between December 3, 2018 and February 10, 2020, on April 1, 2019, LogicBio released its full year 2018 financial results, touting the Company’s progress with LB-001 and stating “the Company continues to advance its lead product candidate to an expected Investigational New Drug (IND) by the end of 2019” and into a Phase 1/2 clinical trial in MMA patients in 2020. Throughout the relevant period, LogicBio continued to affirm LB-001’s progress and timeline, and on January 10, 2020, the Company announced the submission of its IND with the U.S. Food and Drug Administration (FDA). Despite LogicBio’s confidence in LB-001’s IND, on February 10, 2020, LogicBio revealed that “the has placed a clinical hold on the submission for LB-001 for the treatment of methylmalonic acidemia (MMA) pending the resolution of certain clinical and nonclinical questions.” On this news, LogicBio’s share price fell almost 32%, to close at $7.11 per share. The stock continues to decline.