Lowey Dannenberg is investigating Allakos, Inc. (“Allakos” or the “Company”) (NASDAQ: ALLK) and certain of its officers and/or directors for potential violation of federal securities laws or other unlawful business practices in connection with Allakos’ development of AK002, a drug for the treatment of certain gastrointestinal diseases. 

On December 18, 2019, Seligman Investments (“Seligman”), an investment management company, published a report in which it characterized Allakos as “A Suspect Biotech with a Phase 2 Farce, Incredulous Trial Investigators, and Warning Signs of Potential Fraud.”  In the 215-page report, Seligman accused Allakos of having “buried the results for the two AK001 studies it conducted,” reporting trial results with “glaring omissions,” “cherry-picked measures,” and “statistical gimmicks and obfuscation,” and having engaged in “[f]lagrant nepotism in key clinical roles.” 

Following the publication of the Seligman report, the price of Allakos’ shares fell $13.25 per share to close at $119.28 on December 18, 2019, representing a price drop of 10% on a single trading day.  The sharp drop in the price of Company shares caused significant financial losses to investors. 

If you are a shareholder of Allakos who suffered a loss, we encourage you to contact attorney Andrea Farah of Lowey Dannenberg at (914) 733-7256 or afarah@lowey.amgdigital.solutions to learn more about this investigation or to discuss your options. For more information, you can also visit the investigation page on our website, lowey.com/securities.