McCune Law Group Investigated Centessa Pharmaceuticals (NASDAQ: CNTA) Over Investor Losses as a Result of Their Misleading Statements.
Centessa Allegedly Tried to Downplay the True Negative Effects of Their Products with Misleading Statements.
McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC (MLG) has investigated potential claims against Centessa Pharmaceuticals (NASDAQ: CNTA) over major losses suffered by investors as a result of Centessa making false/misleading statements. From November 1, 2021, through August 10, 2022, Centessa announced three times that negative results from their development trials led to the cancellation of one of their products. As a result of these multiple announcements, their stock prices over time of these announcements fell to an estimated total of 51%. This rapid drop in share price has resulted in significant losses and damages for investors.
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UDAP Civil Penalties
McCune Law Group Has Investigated Investor Losses as a Result of Centessa Pharmaceuticals’ Misleading Statements
Centessa Pharmaceuticals (NASDAQ: CNTA) develops multiple medical products such as lixivaptan, a vasopressin V2 receptor small molecule inhibitor in Phase 3 clinical development for the treatment of autosomal dominant polycystic kidney disease. Centessa also is developing a small molecule pharmacological chaperon folding corrector of the Z variant of the DNA encoding protein alpha-1-antitrypsin, ZF874, which is in Phase 1 clinical development for the treatment of A1AT deficiency. On May 28, 2021, Centessa conducted the Initial Public Offering, issuing 16.5 million of its securities to the public at the price of $20 per security.
McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC (MLG) has investigated claims that Centessa made false and/or misleading statements and/or concealed that: (1) the company’s product, lixivaptan, was less safe than the company had represented; (2) Centessa overstated lixivaptan’s clinical and commercial prospects; (3) another Centessa product, ZF874, was less safe than it had been represented; (4) Centessa overstated ZF874’s clinical and commercial prospects while downplaying the drugs’ safety issues; and (5) as a result, statements made by Centessa during its IPO and the company’s public statements were materially false and/or misleading and failed to state information required.
Investors Suffered Significant Losses
On November 1, 2021, Centessa announced results from the phase 1 study evaluating ZF874 in treating AATD, including among other results, potential safety issues related to increases in liver enzymes. On this news, Centessa’s share price fell by more than 18%.
Then, on June 2, 2022, Centessa announced that it had made a strategic decision to discontinue development of lixivaptan. On this news, Centessa’s share price fell by nearly 28%.
Last, on August 10, 2022, Centessa announced its decision to discontinue development of ZF874 following a recent report of an adverse event involving liver enzymes. On news, Centessa’s share price fell by an additional 5%. Compared to its IPO price, Centessa’s share price had fallen significantly.
The deadline to file for lead plaintiff for this case has passed. If you have any questions regarding this case or are an investor who has suffered losses due to another company’s misconduct , please contact our Securities Litigation team by completing the form.
Handling This Investigation
Elaine S. Kusel, who joined McCune Law Group, Vercoski, Kusel, Weck, Brandt, APC, (MLG), in 2008 and leads the firm’s New Jersey office. As a nationally renowned class action attorney, she performs a significant role in the firm’s Consumer Fraud Class Action and Securities Litigation divisions.
After graduating from law school, her practice had included fraud litigation, mass torts, and international human rights law. Ms. Kusel has been integral to the successful recovery of multi-million-dollar settlements and verdicts for wronged consumers and investors.
Sherief Morsy joined the McCune Law Group, Vercoski, Kusel, Weck, Brandt, APC, (MLG), New Jersey office in 2020. His practice primarily focuses on consumer fraud class actions, Securities Litigation, and other complex litigation matters.
Prior to joining the firm, Mr. Morsy was a senior associate at a New York City law firm, whose practice focused on complex civil and class action litigation, including securities litigation, antitrust litigation, and consumer class actions. As he previously assisted investors in recovering their losses resulting from corporate securities fraud, he now focuses that experience at McCune Law Group in assisting people who have been victimized by deceptive business practices or other corporate wrongdoing.
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