Akero(US:AKRO) prnewswire.comยท2024-05-19 15:45Core Viewpoint - A securities class action lawsuit has been filed against Akero Therapeutics, alleging violations of federal securities laws due to misleading statements and omissions regarding the company's business and prospects, resulting in significant investor losses [1][2]. Group 1: Company Overview - Akero Therapeutics is a clinical stage drug development company that has not yet generated any revenues as the FDA has not approved any of its drug candidates for sale [2]. - The company raised over $577 million through two secondary stock offerings and one at-the-market stock offering during the Class Period to finance its operations [2]. Group 2: Class Period and Financial Activities - The Class Period began on September 13, 2022, when Akero reported positive results from its Phase 2b HARMONY study for its lead product candidate, EFX, which is aimed at treating Nonalcoholic steatohepatitis (NASH) [3]. - Following the positive report, Akero conducted a secondary offering, selling over 8.8 million shares at $26 per share, raising approximately $230 million [3]. Group 3: Allegations of Misconduct - Throughout the Class Period, Akero allegedly misled investors about the patient population in its SYMMETRY study, claiming it was limited to patients with NASH-induced cirrhosis, while approximately 20% of the tested patients had not been confirmed to have NASH [4]. - On October 10, 2023, Akero disclosed disappointing interim data from its Phase 2b SYMMETRY trial, revealing that the changes in fibrosis were not statistically significant, leading to a stock price drop of $30.39 per share, or 62.61%, closing at $18.15 [5].