Longeveron Inc. (LGVN) Materially Misrepresented the Viability of its Lead Product Lomecel-B
A shareholder filed a class action on behalf of all persons and entities that purchased Longeveron Inc. (NASDAQ: LGVN) Class A common stock pursuant to or traceable to the Company’s February 12, 2021 initial public offering (“IPO”), or between February 12, 2021 and August 12, 2021. Longeveron is a clinical stage biotechnology company that engages in developing cellular therapies for aging-related and life-threatening conditions. The Company’s lead investigational product is Lomecel-B, which is currently in Phase 2b of its trial (“Phase 2b Aging Frailty Trial”).
According to the complaint, Longeveron conducted its initial public offering (“IPO”) on February 12, 2021, issuing 2.66 million Class A shares at $10.00 per share, for approximate proceeds of $24.7 million. However, defendants negligently prepared the Offering Documents in connection with the IPO. Specifically, defendants failed to disclose that: (i) Lomecel-B was not as effective in treating aging frailty as defendants had led investors to believe; (ii) accordingly, Lomecel-B’s clinical and commercial prospects with respect to aging frailty were overstated; and (iii) as a result, the Offering Documents and defendants’ public statements made between February 21, 2021, and August 12, 2021, were materially false and misleading.
On August 13, 2021, Longeveron issued two press releases – one announcing topline results of the Phase 2b Againg Frailty Trial and one addressing the Company’s financial results for the second quarter of 2021. Both press releases disclosed that Lomecel-B had “not achiev[ed] … statistical significance for the pairwise comparison to placebo” with respect to the primary efficacy endpoint. On this news, Longeveron’s stock price fell almost 28%, to close at $3.90 per share on August 13, 2021, representing a 61% total decline from the IPO price. The stock has not recovered.
If you purchased shares of Longeveron (LGVN) pursuant to the Company’s February 12, 2021 IPO, or between February 12 and August 12, 2021, you have until November 12, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.