Biotechnology firm Verve Therapeutics is under fire as it confronts a proposed class action lawsuit claiming the company misled investors about the risks associated with its experimental gene-editing drug, Verve-101. The lawsuit, filed by Thomas Oldroyd in Massachusetts federal court on Tuesday, accuses the company of deceptive practices that contributed to a dramatic drop in its stock value.
Lawsuit Details and Allegations
Oldroyd’s suit seeks to represent investors who traded Verve securities from August 2022 through April 2024. The complaint alleges that Verve Therapeutics, based in Boston, failed to disclose crucial information about the Heart-1 clinical trial for Verve-101, which targets heterozygous familial hypercholesterolemia—a severe cardiovascular condition.
In August 2022, Verve reported to the U.S. Securities and Exchange Commission (SEC) about the initiation of the Heart-1 trial, noting potential risks related to serious adverse events and their impact on regulatory approval. However, Oldroyd contends that this disclosure was misleading because it did not reveal that even minor adverse events could lead to a halt in the trial’s enrollment.
Verve Therapeutics Class Action Lawsuit : Subsequent Claims and Market Impact
The lawsuit further accuses Verve of making misleading statements in later financial reports. A November 2023 press release, for instance, suggested that the trial’s safety profile was acceptable, despite acknowledging an adverse event that led to a heart attack in one patient. This press release allegedly downplayed the potential for halting the trial due to such events.
