Investors who purchased shares of BioAge Labs, Inc. (NASDAQ: BIOA) between its September 26, 2024, initial public offering (IPO) and January 7, 2025, may be eligible to join a class action lawsuit filed by law firm Levi & Korsinsky. The lawsuit, which accuses BioAge of misrepresenting the safety of its lead drug candidate, azelaprag, is a significant legal battle for investors affected by the company’s actions. The deadline for shareholders to contact the firm and join the suit is March 10, 2025.
Allegations of Misrepresentation
The class action lawsuit stems from BioAge’s September 2024 IPO, where the company allegedly misled investors about the safety profile of its experimental drug azelaprag. According to the suit, BioAge downplayed or failed to disclose important safety concerns about the drug, which was being developed to treat obesity. Azelaprag’s safety became a crucial issue when it was discovered during clinical trials that the drug caused elevated liver transaminase levels, a sign of potential liver damage in participants.
On December 6, 2024, BioAge made the shocking announcement that it was halting its Phase 2 STRIDES clinical trial for azelaprag due to safety concerns regarding elevated liver enzymes. This announcement led to a sharp decline in the company’s stock price, causing substantial financial losses for investors who had purchased shares during the IPO.
Levi & Korsinsky, LLP, a prominent securities class action law firm, has filed the lawsuit on behalf of shareholders who bought BioAge stock during the class period. The firm alleges that BioAge’s misrepresentations led investors to believe the company’s lead drug candidate was safe and viable, while in reality, serious safety issues were not disclosed to the public in a timely manner.
The Timeline of Events
BioAge, a clinical-stage biotechnology company focused on developing therapeutics for aging and age-related diseases, made its IPO on September 26, 2024. During the offering, the company touted its lead drug candidate, azelaprag, as a promising treatment for obesity, a market worth billions of dollars. The IPO price was set at $16 per share, and the company raised approximately $150 million through the public offering.
However, shortly after the IPO, BioAge faced increasing scrutiny regarding azelaprag. Clinical trial data revealed that participants in the STRIDES Phase 2 trial showed signs of elevated liver transaminase levels, raising concerns about the drug’s safety. The company initially downplayed the findings, but by December 6, 2024, BioAge announced the suspension of the trial.
This move triggered a dramatic drop in BioAge’s stock price, as investors feared the company would not be able to advance its lead drug candidate to market. BioAge’s stock, which had been trading above the $16 per share mark shortly after the IPO, fell significantly following the news, causing losses for those who had bought in during the offering.
The Role of Levi & Korsinsky
Levi & Korsinsky, a well-established law firm specializing in securities class actions, is representing the affected shareholders in the lawsuit. The firm alleges that BioAge failed to disclose critical information regarding the safety concerns of azelaprag, which misled investors about the true risks associated with the drug and the company’s prospects.
The law firm is urging shareholders who purchased BioAge stock during the class period to come forward and participate in the lawsuit. The deadline for filing claims is March 10, 2025. Shareholders who are eligible to join the class action are encouraged to contact Levi & Korsinsky to discuss their potential involvement.
Levi & Korsinsky has significant experience in handling complex securities litigation, and its track record includes recovering substantial sums for investors harmed by corporate misconduct. The firm’s attorneys are currently reviewing potential claims from BioAge shareholders to ensure they are properly represented.
What Shareholders Should Know?
Investors who believe they were misled by BioAge’s statements regarding azelaprag’s safety and the company’s financial outlook may have legal recourse. By joining the class action, shareholders can seek compensation for the financial losses they incurred as a result of BioAge’s alleged misconduct.
Shareholders must act before the March 10, 2025 deadline to preserve their right to participate in the lawsuit. To join the class action or seek more information, investors can contact Levi & Korsinsky directly via email at [email protected] or by phone at (212) 363-7500.
The lawsuit highlights the broader issue of transparency and accuracy in corporate disclosures, particularly when it comes to the risks associated with clinical trials and drug development. BioAge’s alleged failure to disclose critical safety data may have misled investors about the viability of its drug candidate, and the legal proceedings will likely serve as a reminder to other companies in the biotech sector about the importance of providing accurate information to their investors.
Conclusion
The class action lawsuit against BioAge Labs is a reminder of the risks involved in investing in biotech companies, particularly those involved in clinical trials. While the potential rewards can be significant, the potential for setbacks and safety concerns is always present. Investors who were misled by BioAge’s IPO and its handling of azelaprag’s safety data may have legal recourse through this class action suit.
For more information on the case or to file a claim, investors are encouraged to visit the official Levi & Korsinsky website or reach out directly via email or phone.
For further details on investor protections and securities class actions, you can visit the U.S. Securities and Exchange Commission (SEC). Additionally, the U.S. Department of Justice (DOJ) provides resources on consumer protection in securities fraud cases.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
Premlata is a seasoned finance writer with a keen eye for unraveling complex global financial systems. From government benefits to energy rebates and recruitment trends, she empowers readers with actionable insights and clarity. When she’s not crafting impactful articles, you can find her sharing her expertise on LinkedIn or connecting via email at [email protected].