Longeveron Inc. (LGVN) Materially Misrepresented the Viability of its Lead Product Lomecel-B
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.
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.
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