BioAge Labs Faces Class Action Lawsuit Over Misleading IPO Information

SAN FRANCISCO, Jan. 29, 2025 (GLOBE NEWSWIRE) -- BioAge Labs BIOA, a biopharmaceutical company that specializes in treatments for metabolic diseases, is currently embroiled in a class-action lawsuit. The lawsuit has been initiated by shareholders who claim the company provided misleading information regarding the safety and future success of its primary drug candidate prior to its initial public offering (IPO) last September.

Hagens Berman, the law firm handling the case, encourages any investors who bought shares of BioAge during the IPO or on the public market and have incurred significant losses to report their losses quickly.

Details of the BioAge Labs Securities Class Action:

The lawsuit, titled Soto v. BioAge Labs, Inc., has been filed with the U.S. District Court for the Northern District of California. It focuses on the company's STRIDES Phase 2 clinical trial for a drug called azelaprag, which is still in the investigational stage. The suit asserts that the IPO's offering documents, which successfully raised $227.7 million by selling 12.65 million shares at $18 each, were filled with "materially false and/or misleading" statements.

Notably, the lawsuit contends that BioAge portrayed the STRIDES trial as safe and expressed strong confidence in achieving positive results shortly before the trial's results were announced. However, the situation shifted dramatically when, just months after the IPO, on December 6, 2024, BioAge revealed it was halting the trial due to some participants exhibiting elevated liver enzymes, a condition known as transaminitis.

This revelation prompted a drastic decline in BioAge's stock, plummeting over 76 percent. By the time the lawsuit was lodged, the stock had fallen to around $5.82 per share, significantly lower than the initial offering price.

The shareholders who have joined this lawsuit assert that the company, along with certain executives and directors, have violated the Securities Act of 1933 due to their alleged misleading disclosures. This recent information and the subsequent dramatic drop in stock value have led Hagens Berman to launch an investigation into the matter.

Reed Kathrein, a partner at Hagens Berman, noted the troubling timing of the drug trial's discontinuation so close to the IPO, raising concerns about the integrity of the company's disclosures made in the lead-up to the public offering.

If you invested in BioAge and have experienced considerable losses, or if you possess information that could assist in the investigation, it is encouraged that you report your losses promptly.

For those seeking more information and answers about the BioAge class-action suit and the investigation, further details can be obtained.

Whistleblower Information: Individuals with non-public information regarding BioAge are encouraged to explore their options to aid in the investigation or consider leveraging the SEC Whistleblower program. This program offers potential rewards up to 30 percent of any successful recovery made by the SEC for original information provided.

For further inquiries, contact Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman: Hagens Berman is a global legal firm dedicated to protecting the rights of plaintiffs, focusing on corporate accountability. The firm represents investors, whistleblowers, workers, consumers, and others in securing substantial results against corporate negligence and wrongdoing. Hagens Berman has successfully achieved over $2.9 billion in legal recoveries in this sector. More information about the firm’s work and accomplishments can be found at hbsslaw.com.

BioAge, lawsuit, investment