Pomerantz Named Co-Lead Counsel in Securities Class Action Against Apellis

Pomerantz was recently appointed co-lead counsel in a securities class action against the pharmaceutical company Apellis. The suit alleges that the company misled investors about the safety of one of its treatments for an eye condition that can lead to blindness.

Apellis is a pharmaceutical company that focuses on therapies for autoimmune and inflammatory diseases. One of its leading treatments is SYFOVRE, the only FDA approved treatment for Geographic Atrophy, which is one of the leading causes of blindness. According to the complaint, beginning in January 2021, as the company was conducting clinical trials for SYFOVRE, Apellis often touted the safety of the treatment. The company repeatedly claimed there were “no events of retinal vasculitis or retinal vein occlusion” to date in the clinical trials, and said that the treatment “continue[d] to demonstrate a favorable safety profile.” In February 2023, the FDA approved SYFOVRE, and in a conference call discussing the approval, the company stated that the treatment showed “a ‘[w]ell-demonstrated safety profile’ following approximately 12,000 injections over a 24-month period.”

In July 2023, the American Society of Retina Specialists’ Research and Safety in Therapeutics committee released a letter reporting on six instances of retinal vasculitis in patients receiving treatment with SYFOVRE. Apellis issued a statement saying they were investigating the cases. Two weeks later the company released another statement saying they had confirmed a seventh case of retinal vasculitis and were evaluating a potential eighth case. Over the course of these revelations, the share price of Apellis experienced a sharp decline. In the complaint, the plaintiffs allege “the design of SYFOVRE’s clinical trials was insufficient to identify incidents of retinal vasculitis in patients receiving SYFOVRE injections,” posing a risk to the commercial viability of SYFOVRE, and rendering Apellis’ statements about its business, operations, and prospects misleading.

Apellis’ CEO Cedric Francois, the company’s CFO Timothy Sullivan, and Federico Grossi, Apellis’ former Chief Medical Officer are also named as defendants in the suit.