Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Metagenomi Inc. (MGX)

/EIN News/ -- NEW YORK, Sept. 27, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased the securities of Metagenomi Inc. (“Metagenomi” or the “Company”) (NASDAQ: MGX) between February 9, 2024 and May 1, 2024, both dates inclusive (the “Class Period”).

The Complaint alleges that Metagenomi introduced itself to investors during its initial public offering as a “genetic medicines company” having a long-standing business relationship with Moderna, one of the leading Covid-19 vaccine companies. The Complaint also alleges that integral to Metagenomi’s collaboration with Moderna was the claim that the two companies had entered into a Strategic Collaboration and License Agreement on October 29, 2021, which included multiple four-year research programs and a subsequent licensed product-by-licensed product agreement.

The Complaint further alleges that under the terms of the collaboration, Metagenomi and Moderna planned to advance a series of in vivo gene editing therapeutics against undisclosed targets. Notably, Metagenomi was to utilize its gene editing systems in combination with Moderna’s mRNA and LNP technologies, to develop and produce next-generation therapies for genetic diseases. According to the Complaint, as per the agreement, Metagenomi was to receive an upfront cash payment and was eligible to receive certain target option exercise fees as well as development, regulatory and commercial milestone payments, plus tiered royalties on net sales of any products that were commercialized by Moderna. The Complaint alleges that Moderna also agreed to make an equity investment in Metagenomi in the form of a convertible note.

The Complaint alleges Metagenomi completed its initial public offering on February 13, 2024, selling 6.25 million shares at $15 per share. However, less than three months later, on May 1, 2024, Metagenomi announced that it and Moderna had “mutually agreed to terminate their collaboration” agreement. An analyst reported on the announcement, noting that the news was surprising, as was its timing. The analyst also noted that the partnership Metagenomi had with Moderna was a critical part of the core thesis and that losing this partnership during this early stage in development raised more questions than answers. In response to the news, Metagenomi’s stock price declined from $7.04 per share on May 1, 2024 to $6.17 per share on May 2, 2024.

Investors who purchased or otherwise acquired shares of Metagenomi should contact the Firm prior to the November 25, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.