Kaskela Law LLC is investigating Homology Medicines, Inc. (“Homology” or the “Company”) (NASDAQ: FIXX) on behalf of the Company’s long-term investors.
Recently an amended securities fraud complaint was filed against Homology on behalf of investors who purchased shares of the Company’s stock between March 12, 2020 and February 18, 2022. According to the complaint, during that time period Homology and certain of the Company’s senior executive officers made a series of false and/or misleading statements to investors concerning a clinical trial for HMI-102.
HMI-102 is a gene therapeutic designed to treat phenylketonuria (“PKU”), a genetic condition that can lead to excessive phenylalanine levels and brain damage. Homology commenced its clinical trial for HMI-102 (the “pheNIX” trial) in June 2019.
According to the complaint, in November 2020, “after making numerous false representations about HMI-102’s efficacy and safety profile, Homology disclosed the pheNIX data from the dose-escalation phase of the trial. The data confirmed that HMI-102 was less safe and less effective than Defendants had previously let on, yet Homology proclaimed that it still supported continuing the pheNIX trial.”
On February 18, 2022, Homology announced that the FDA would be issuing a clinical hold on the pheNIX trial and shutting it down indefinitely unless and until updates were made to the protocol to address critical safety concerns.
As a result of these disclosures, Homology’s shares, which traded above $19 per share at the time the pheNIX trial was commenced, have declined in value to below $5 per share.
The investigation seeks to determine whether the members of Homology’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
Current Homology stockholders who purchased or acquired shares of the Company’s stock prior to June 1, 2019 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, to receive additional information about this investigation and their legal rights and options.