Rocket Investor Sues After Rare Disease’s Therapy Trial Halted

Rocket Pharmaceuticals Inc. overhyped its treatment for a rare genetic disorder before revealing a patient from its clinical trial had died and that a federal agency had placed a hold on the study, resulting in major losses for investors, a lawsuit said.

The biotechnology company’s stock price plunged the day it announced that the US Food and Drug Administration placed a holding on the potential Danon disease therapy’s key phase 2 study, said the complaint filed Wednesday in the US District Court for the District of New Jersey. Share prices fell almost 63% to close at $2.33 on May 27—the ...