Metagenomi Can’t Ax IPO Investor Suit Over Moderna Partnership

Metagenomi Therapeutics Inc. must defend against allegations the gene editing company failed to alert investors its relationship with Moderna Inc. was fracturing before its February 2024 initial public offering.

Considering former Metagenomi employees’ testimony that communication had broken down with Moderna by the time the IPO’s registration statement was filed, it was misleading for Metagenomi’s IPO paperwork to say it expected collaboration to progress without disclosing the souring of its Moderna relationship, Judge Eumi K. Lee said, allowing proposed class claims to proceed Tuesday.

Metagenomi said their deal was mutually terminated less than three months after its market debut. Its ...