Globe Newswire 16-Jan-2020 11:03 AM
BOSTON, Jan. 16, 2020 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors and whistleblowers nationwide, reminds investors of the Firm's ongoing investigations of Allakos, Inc. and Sterling Bancorp, Inc. The investigations concern whether these companies and certain of their officers and directors violated the federal securities laws by misrepresenting their respective company's business operations and prospects, resulting in millions of dollars of investor losses.
On December 18, 2019, Seligman Research published a report on Allakos entitled "A Suspect Biotech with a Phase 2 Farce, Incredulous Trial Investigators, and Warning Signs of Potential Fraud." The report claims to have identified 22 "red flags" and accused the company of having "a checkered history of conducting small, low-credibility trials, marked by a striking level of what we consider to be discrepancies, omissions, cherry-picking, and other red flags;" and engaging in "[f]lagrant nepotism in key clinical roles." On this news, Allakos's stock price fell $13.25 per share, or 10%, to close at $119.28 on December 18, 2019.
On December 9, 2019, Sterling Bancorp disclosed that its subsidiary, Sterling Bank and Trust, FSB, had suspended its Advantage Loan program in connection with an ongoing internal review of the program's documentation procedures. The internal review entails auditing documentation on past loans and putting into place additional "systems of controls to ensure the Bank's policies and procedures are followed for loan origination." On this news, Sterling Bancorp's stock price fell $2.16 per share, or 22.86%, to close at $7.29 per share on December 9, 2019.
"These are very serious allegations and we're focused on investors' losses and determining whether these companies knowingly misled the public," said Mark Delaney, who is leading the firm's investigations into these companies.
If you have purchased or otherwise acquired these securities and have questions about your legal rights, or possess information relevant to these investigation, you are encouraged to contact attorney Mark Delaney at (617) 398-5600, by email at firstname.lastname@example.org or at the links identified above
Block & Leviton LLP was recently ranked 4th among securities litigation firms by ISS for recoveries in 2017. The firm represents many of the nation's largest institutional investors and numerous individual investors in securities litigation throughout the country. Indeed, its lawyers have recovered billions of dollars for its clients.
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