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Frequency Therapeutics Faces Investor Suit Over Clinical Trials

June 4, 2021, 5:28 PM

Frequency Therapeutics Inc. allegedly made misleading statements about clinical trial results for a new hearing loss treatment, leading to a stock drop, investors allege in federal court in Massachusetts.

The pharmaceutical company touted its Phase 2a trial for FX-322, intended to treat severe sensorineural hearing loss, despite disappointing results in comparison to a placebo, according to the would-be class complaint filed in the U.S. District Court for the District of Massachusetts.

A Frequency executive told investors in January that the company hadn’t seen much of a placebo effect, the complaint says. The company disclosed in March “deeply disappointing” interim results, ...