An investigation on behalf of investors of Allakos Inc. (NASDAQ: ALLK) shares over potential securities laws violations by Allakos Inc. and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Allakos Inc. (NASDAQ: ALLK) concerning whether a series of statements by Allakos Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Redwood City, CA based Allakos Inc., a clinical stage biopharmaceutical company, focuses on developing therapeutic antibodies targeting allergic, inflammatory, and proliferative diseases.

On December 18, 2019, a report was published describing Allakos Inc. as A Suspect Biotech with a Phase 2 Farce, Incredulous Trial Investigators, and Warning Signs of Potential Fraud. The report included 22 warning signs and issues, including Allakos Inc.: having buried the results for the two AK001 studies it conducted, but our research indicates a debacle[;] having a checkered history of conducting small, low-credibility trials, marked by . . . discrepancies, omissions, cherry-picking, and other red flags[;] and engaging in [f]lagrant nepotism in key clinical roles[.]

Shares of Allakos Inc. (NASDAQ: ALLK) declined from $132.79 per share on December 17, 2019, to as low $69.89 per share on January 24, 2020.