Sarepta Investor Sues Board Over Patient Deaths, Insider Sales

Certain Sarepta Therapeutics Inc. insiders were accused in a stockholder lawsuit of reaping a combined $6.2 million selling shares while misleading investors about the safety of its key Duchenne muscular dystrophy therapy.

The gene-therapy maker and corporate leaders overhyped the treatment’s safety and prospects before two patients died, according to the shareholder derivative complaint filed Wednesday in the US District Court for the Southern District of New York. Sarepta’s stock price tumbled multiple times after regulators expressed mounting concerns about ELEVIDYS infusions for non-ambulatory Duchenne patients earlier this year.

Board members as well as two current executives and one former ...