NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a securities class action lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of those who acquired Frequency Therapeutics, Inc. (“Frequency” or the “Company”) (NASDAQ: FREQ) securities from November 16, 2020 through March 22, 2021, inclusive (the “Class Period”). Investors have until August 2, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Frequency is a Massachusetts-based pharmaceutical company focused on the development of treatments for hearing loss, including its drug “FX-322.” Frequency has conducted several clinical studies evaluating the safety and effectiveness of FX-322, the most significant of which was a Phase 2a study that began in October 2019.
In April 2020, Frequency’s Chief Executive Officer (“CEO”), David L. Lucchino, began selling his shares of Frequency, totaling over 350,000 shares sold and earning over $10.5 million.
On March 23, 2021, before the market opened, Frequency disclosed in a press release disappointing interim results of the Phase 2a study, revealing that subjects who had mild to moderate sensorineural hearing loss did not demonstrate improvements in hearing measures versus placebo. On this news, Frequency’s stock price declined by $28.30 per share, or approximately 78%, from $36.29 per share to close at $7.99 per share on March 23, 2021, thereby damaging investors.
The lawsuit alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that Frequency’s Phase 2a study did not yield positive results to support the commercialization of FX-322; and (2) that, as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Frequency securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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