Drug Discovery and Development

Frequency Therapeutics faces growing legal challenges

By |

Frequency TherapeuticsHearing loss drug developer Frequency Therapeutics (NASDAQ: FREQ) is the subject of a growing number of security fraud accusations on behalf of investors.

Earlier this year, things were looking up for the company’s lead product candidate, FX-322. But on March 23, Frequency Therapeutics announced that interim results suggested that FX-322 was not effective at improving mild to moderately severe sensorineural hearing loss in a Phase 2a study compared to placebo. Previous results from a smaller study had been more positive.

The company’s stock fell from a high of $55.01 on Feb. 19 to $9.55 in mid-day trading on June 15.

Among the law firms filing lawsuits against Frequency Therapeutics is Robbins LLP (San Diego), which recently filed a class-action lawsuit for purchasers of Frequency Therapeutics stock between Nov. 16, 2020 and March 22. That lawsuit alleges that the company misrepresented its FX-322 experimental drug in earnings calls, press releases, SEC filings and pharmaceutical presentations before March 23. Also, before that date, the company’s CEO David Lucchino sold more than 350,000 shares of its stock, netting more than $10.5 million.

Other law firms that are pursuing similar class action litigation against Frequency Therapeutics include the following:

  • Berger Montague (Philadelphia).
  • Bragar Eagel & Squire (New York City).
  • Portnoy Law Firm (Los Angeles).
  • Schall Law Firm (Los Angeles).
  • Robbins Geller Rudman & Dowd (San Diego).
  • Levi & Korsinsky (New York City).
  • Bronstein, Gewirtz & Grossman (New York City).
  • Frank R. Cruz (Los Angeles).
  • Howard G. Smith (Bensalem, Pa.).
  • Glancy Prongay & Murray LLP (Los Angeles).
  • Law Offices of Vincent Wong (New York City).
  • Klein Law Firm (New York City).

A Frequency Therapeutics spokesperson said the firm has no comment on this subject.

Frequency Therapeutics has drawn on research from noted scientist Robert Langer of MIT and serial entrepreneur Jeff Karp. Karp is also a professor of medicine at Brigham and Women’s Hospital at Harvard Medical School.

Langer serves on the board of Frequency Therapeutics.

Filed Under: ENT drugs
Tagged With: , , ,
 

About The Author

Brian Buntz

As the pharma and biotech editor at WTWH Media, Brian has almost two decades of experience in B2B media, with a focus on healthcare and technology. While he has long maintained a keen interest in AI, more recently Brian has made making data analysis a central focus, and is exploring tools ranging from NLP and clustering to predictive analytics.

Throughout his 18-year tenure, Brian has covered an array of life science topics, including clinical trials, medical devices, and drug discovery and development. Prior to WTWH, he held the title of content director at Informa, where he focused on topics such as connected devices, cybersecurity, AI and Industry 4.0. A dedicated decade at UBM saw Brian providing in-depth coverage of the medical device sector. Engage with Brian on LinkedIn or drop him an email at bbuntz@wtwhmedia.com.

Related Articles Read More >

Search Drug Discovery & Development