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Zafgen Dodges Securities Class Action Alleging Drug Trial Fraud

Aug. 18, 2016, 4:00 AM

Zafgen Inc. dodged class action allegations that it didn’t disclose adverse events in a clinical trial of its obesity drug beloranib when a federal district court dismissed the case Aug. 9, calling the litigation “pleading fraud by hindsight” (Brennan v. Zafgen, Inc., 2016 BL 257594, D. Mass., Civil Action No. 15-13618-FDS, 8/9/16).

Shareholders in Boston-based Zafgen alleged in the U.S. District Court for the District of Massachusetts that public statements prior to the report of a death during a beloranib clinical trial had mentioned two “serious thrombotic events” during the trial. In announcing the patient’s death in...

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