Prominent investor rights law firms Kessler Topaz Meltzer & Check, LLP (KTMC) and Bernstein Litowitz Berger & Grossmann LLP (BLB&G) have filed a securities class action lawsuit against Apellis Pharmaceuticals, Inc. (Apellis) on behalf of investors who purchased or acquired Apellis common stock between January 28, 2021, and July 28, 2023. The lawsuit alleges misconduct by the company and its failure to disclose critical information related to its leading therapeutic treatment, "SYFOVRE." As a result, the stock price of Apellis has plummeted, leading to significant losses for investors.

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Apellis Pharmaceuticals: Overview and Misconduct Allegations

Apellis Pharmaceuticals is a commercial-stage biopharmaceutical company that focuses on developing therapeutic compounds for autoimmune and inflammatory diseases by inhibiting the complement system. "SYFOVRE," an intravitreal pegcetacoplan injection, is one of its leading treatments, approved for the treatment of geographic atrophy (GA), a major cause of blindness. However, recent events have raised concerns about the safety and efficacy of this treatment.

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The Class Period and Misleading Statements

The class period under scrutiny began on January 28, 2021, the day of Apellis's Virtual Investor Event, where the company presented its ongoing Phase 3 clinical trials and completed Phase 2 trial for pegcetacoplan. The presentation highlighted positive results, including decreased lesion growth and a favorable safety profile, claiming it was in line with other studies of intravitreally administered agents. Throughout the Class Period, Apellis repeatedly represented that SYFOVRE demonstrated a favorable safety profile with minimal adverse effects.

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Safety Concerns and Stock Price Decline

However, on July 15, 2023, the American Society of Retina Specialists (ASRS) published a letter expressing concerns about SYFOVRE. The ASRS reported cases of eye inflammation, including instances of occlusive retinal vasculitis, potentially leading to blindness. In response, Apellis's stock price dropped by nearly 38% on July 17, 2023.

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Apellis addressed these concerns in a statement issued after the market closed on July 17, 2023. They confirmed instances of occlusive retinal vasculitis and stated that a thorough investigation was underway, in collaboration with external specialists. However, this did not prevent further stock price decline, with an additional 23.75% decrease on July 18, 2023.

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Further Downgrades and Stock Price Decline

On July 20, 2023, Wedbush downgraded Apellis's price target significantly, further impacting the stock price with a 15% decline on the same day. On July 29, 2023, Apellis provided another update, confirming a seventh event of retinal vasculitis and evaluating an eighth reported event, leading to a 19% stock price decrease.

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Allegations in the Complaint

The lawsuit alleges that throughout the Class Period, Apellis made materially false and/or misleading statements and failed to disclose material adverse facts regarding the safety of SYFOVRE. Defendants are accused of misrepresenting the clinical trials' design and the commercial adoption risks associated with the treatment, thereby lacking a reasonable basis for their statements about the company's business and prospects.

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The class action lawsuit against Apellis Pharmaceuticals highlights the seriousness of the allegations regarding the company's handling of safety concerns surrounding its leading therapeutic treatment, SYFOVRE. Investors who suffered significant losses during the Class Period have an opportunity to take action and seek recovery as lead plaintiffs by contacting the law firms KTMC and BLB&G before October 2, 2023. This case serves as a reminder for investors to be cautious and vigilant about the information disclosed by companies and the potential risks associated with their investments.