August 28, 2020 - An amended complaint was filed.

March 10, 2020 - An investor in shares of Allakos Inc. (NASDAQ: ALLK) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Allakos Inc. in connection with certain allegedly false and misleading statements made between August 5, 2019 and December 17, 2019.

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.

According to the complaint the plaintiff alleges on behalf of purchasers of Allakos Inc. (NASDAQ: ALLK) common shares between August 5, 2019 and December 17, 2019, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between August 5, 2019 and December 17, 2019, the defendants made false and/or misleading statements and/or failed to disclose that: The Company’s ENIGMA Trial for its flagship drug, AK002, was poorly designed, that Allakos cherrypicked timeframes and to engineer results for the ENIGMA trial, that Allakos used superficial endpoints in the ENIGMA Trial relative to FDA guidance, that Allakos misrepresented the number of adverse incidents that occurred during the ENIGMA Trial, that the ENIGMA Trial was not well-controlled, that Allakos failed to report key data from the ENIGMA Trial, and that as a result, defendants’ statements about Allakos’ business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.