PepGen Faces Securities Class Action Over Alleged Disclosure Violations

Faruqi & Faruqi, LLP, a U.S.-based securities litigation firm, has launched an investigation into PepGen Inc. $PEPG over alleged violations of federal securities laws. A class action lawsuit has been filed, with investors given until August 11, 2025, to apply for lead plaintiff status. The complaint alleges that PepGen and certain executives made false or misleading statements and omitted material facts in their communications with shareholders. The investigation focuses on whether PepGen misled investors regarding its operations, financial outlook, or drug development pipeline, potentially inflating its stock price.

Alleged Misconduct by PepGen

The complaint claims that PepGen breached its disclosure obligations under the Securities Exchange Act of 1934. Specifically, the company is accused of releasing investor-facing statements that failed to reflect internal realities, leading to market distortion. These alleged omissions or inaccuracies may have materially impacted PEPG’s valuation and investor decision-making. While details of the disputed disclosures remain sealed, the court will examine SEC filings, press releases, and internal documentation to determine liability.

Sector-Wide Context

PepGen’s case reflects growing legal pressure on clinical-stage biotech firms, where valuations are often based on future expectations rather than revenue. Inaccurate disclosures about trial progress or regulatory feedback can significantly move stock prices. As scrutiny intensifies, early-stage biotech companies face tighter expectations on transparency and consistency in external communications.

Legal and Financial Exposure

If the claims are substantiated, PepGen may face financial penalties, reputational harm, and increased compliance obligations. For development-stage biotech companies, such litigation may also disrupt capital raising or delay strategic partnerships. The class action could prompt PepGen to strengthen its internal controls and improve the accuracy of public statements.

Faruqi & Faruqi’s Litigation Record

Faruqi & Faruqi has extensive experience in shareholder class actions and securities litigation. The firm has led multiple cases involving financial misrepresentation, internal governance failures, and regulatory breaches.

Examples of recent actions include:

• Recoveries exceeding $100 million in medical device fraud.

• Settlements from pharmaceutical misreporting.

• SPAC-related class actions and IPO mispricing claims.

• Derivative suits addressing board oversight failures.

• Regulatory disclosure cases in the biotech and tech sectors.

This track record strengthens the firm’s position in pursuing PepGen’s alleged violations.