Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against ACELYRIN, Inc. (SLRN)
The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
NEW YORK, Nov. 16, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Oregon on behalf of all persons or entities who purchased or otherwise acquired ACELYRIN, Inc. (“ACELYRIN” or the “Company”) (NASDAQ: SLRN) securities between May 4, 2023 and September 11, 2023, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
Acelyrin is a clinical biopharma company that focuses on developing and commercializing transformative medicines. The Company’s lead product candidate is izokibep, a small protein therapeutic designed to inhibit IL-17A with purportedly high potency, which is currently in Part B of a Phase 2b/3 clinical trial for use in the treatment of moderate to severe Hidradenitis Suppurativa (“HS”).
The Complaint alleges that on April 13, 2023, Acelyrin filed a registration statement on Form S-1 with the SEC in connection with the Company’s Initial Public Offering (“IPO”), which, after several amendments, was declared effective by the SEC on May 4, 2023 (the “Registration Statement”). The Complaint further alleges that on May 4, 2023, pursuant to the Registration Statement, Acelyrin’s common stock began publicly trading on the Nasdaq Global Select Market (“NASDAQ”) under the trading symbol “SLRN”.
Additionally, the Complaint alleges that on May 5, 2023, Acelyrin filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the “Prospectus” and, collectively with the Registration Statement, the “Offering Documents”).
The Complaint also alleges that pursuant to the Offering Documents, Acelyrin issued 30 million shares of its common stock to the public at the Offering price of $18.00 per share for proceeds to the Company of $502.2 million after applicable underwriting discounts and commissions.
The Complaint additionally alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) izokibep was less effective in treating HS than Defendants had led investors to believe; (ii) accordingly, Acelyrin overstated izokibep’s clinical and/or commercial prospects; (iii) as a result, Acelyrin also overstated the Company’s business prospects post-IPO; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
The Complaint further alleges that on September 11, 2023, after the markets closed, Acelyrin announced disappointing top-line results from Part B of the Phase 2b/3 trial evaluating izokibep for the treatment of moderate-to-severe HS. Specifically, izokibep failed to show statistically significant reduction in abscesses and inflammatory nodules in patients as compared to placebo.
The Complaint goes on to allege that on this news, Acelyrin’s stock price fell $17.19 per share, or 61.61%, over the following two trading sessions, to close at $10.71 per share on September 13, 2023.
The Complaint lastly alleges that as a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of Acelyrin’s securities, Plaintiff and other Class members have suffered significant losses and damages.
Investors who purchased or otherwise acquired shares of ACELYRIN should contact the Firm prior to the January 16, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
