Securities Arbitration Lawyers BlogLongeveron Inc. (LGVN) Investigated By Silver Law Group
Longveron, Inc., (LGVN) is being investigated by Silver Law Group regarding potential claims for investors in the company to recover losses. The investigation concerns potential violations of the federal securities laws.
If you have losses from investing in Longveron Inc. (LGVN) contact Silver Law Group for a no-cost consultation at (800) 975-4345 or at ssilver@silverlaw.com.
Longveron, Inc. is a publicly traded company focusing on biotechnology and specializing in stem cell research. The company is developing various therapies to treat aging-related disorders such as Alzhiemer’s. The company is using allogeneic mesenchymal stem cells to create regenerative medicine for a number of conditions related to aging, including metabolic syndrome, Alzheimer’s disease, age-related frailty, and hypoplastic left heart syndrome (a rare congenital heart defect in children).
The company’s premier drug, Lomecel-B, an infusion drug, is made from medicinal signaling cells from healthy bone marrow from adult donors. Lomecel-B is designed to specifically treat aging frailty.
In addition, Lomecel-B is also seen as a possible treatment for Acute Respiratory Distress Syndrome (ARDS), which can affect patients with COVID-19 as well as influenza. ARDS has a very limited course of treatment, with ventilators as the most common.
Aging Frailty Phase 2b Clinical Trials
On August 13, 2021, the company issued a press release that included its financial results from the second quarter of 2021. Included were the results of a recent clinical trial of Lomecel-B. Unfortunately, the results were not as promising as hoped.
While all of the participants showed a mean increase of the baseline, it was not enough to show that Lomecel-B offered a significant difference for participants. The company stated that the drug had “not achiev[ed] . . . statistical significance for the pairwise comparison to placebo.” The test involved a six-minute walk for each participant. When compared to a placebo group, there wasn’t much of an improvement.
Upon the announcement of these results, Longeveron’s stock price dropped $1.51 per share, or 27.91%, to close at $3.90 per share on August 13, 2021. The decrease represents a total decline of 61% from the IPO price.
Initial Public Offering
Longeveron held its initial public offering (IPO) in February, 2021 with an underwritten public offering that the company stated would gross $26.6 million. The book-runner for the offering was Kingswood Capital Markets, which is a division of Benchmark Investments, Inc. Alexander Capital L.P. was the co-manager for the offering.
Are You An Investor In Longeveron?
If you’re an investor in Longeveron Inc., you’re encouraged to contact Silver Law Group for additional information and to help us in our investigation.
Silver Law Group is a nationally-recognized class action law firm representing victims of investment fraud. Our attorneys represent investors in class action lawsuits against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct.
Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Contact us for a consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.