SAN FRANCISCO, Oct. 26, 2020 (GLOBE NEWSWIRE) -- Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the investigations can be found at the links provided.
Homology Medicines, Inc. (FIXX) Investigation:
Homology Medicines is a Boston, MA-based gene therapy company focused on curing rare genetic diseases.
The investigation centers on the accuracy of Homology Medicines’ statements concerning the efficacy of its first and lead product candidate, HMI-102, which purportedly treats a rare inherited disorder that causes an amino acid called phenylalanine (Phe) to build up in the body and lead to serious health problems.
In June 2019, Homology Medicines launched a dose-escalation Phase 1/2 clinical trial for HMI-102. Thereafter, Homology Medicines touted initial results, claiming the drug “reported encouraging safety and efficacy data from the dose-escalation portion of the trial,” and that the data showed HMI-102 “produced a sustained reduction in phenylalanine (Phe).”
But on April 15, 2020, a key patient in the Phase 1/2 clinical trial shared test results on Facebook suggesting that HMI-102 gene therapy is unlikely to be efficacious, even in high-dose patients. Although the posts were suspiciously taken down the same day, the Company’s stock fell almost 25%.
Then, on July 21, 2020, Mariner Research published a scathing report, claiming Homology Medicines’ recent comments about HMI-102’s safety were misleading since they “conveniently ignor[ed] the implications to efficacy and the business.” Piecing together disclosed data from a mouse study, the Phase 1/2 trial, and the patient’s Facebook posts, Mariner Research concluded that HMI-102 “therapy is showing zero efficacy even for a high dose patient,” signifying that “the HMI-102 program is dead in the water.” Moreover, citing internal emails and analyst reports, Mariner Research claimed Homology Medicines had selectively discussed the patient’s Facebook posts with sell side analysts covering the Company and major investors, to the detriment of the Company’s shareholder base.
Following Mariner’s report, the price of Homology Medicines shares fell lower the next day.
“We’re focused on investors’ losses and whether Homology Medicines misled investors about the HMI-102 high dose data,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Homology Medicines investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Interface, Inc. (TILE) Investigation:
The investigation centers on the propriety of Interface’s financial reporting, including its accounting for certain expenses such as management bonus accruals, independent consultant fees and stock based compensation.
From the 2Q 2015 – 2Q 2016, Interface pleased investors when it reported income and earnings per share growth, consistently meeting or exceeding analysts’ estimates. The Company attributed the increased margins to its “lean manufacturing initiatives, higher manufacturing volume, improved selling prices, and lower raw material costs and usage.”
But on Apr. 24, 2019, Interface announced that that the SEC had served three separate subpoenas on the Company, probing its earnings per share calculations from 2014 – 2017. The Company also announced that it had placed its Chief Accounting Officer Gregory Bauer on administrative leave when it learned Bauer added notes to materials produced to the SEC.
Then, on Sept. 28, 2020, the SEC filed a settled action against the Company for violations that resulted in the improper reporting of quarterly EPS. Specifically, the SEC order found that during Q2 2015 through Q2 2016 Interface made unsupported manual accounting adjustments to certain expenses to meet EPS estimates. The SEC also found that Bauer, and former Chief Financial Officer (Patrick Lynch) directed the unsupported entries.
These disclosures drove the price of Interface shares down sharply.
“We’re focused on investors’ losses and determining whether Interface engaged in illegal earnings smoothing,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are an Interface investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Homology Medicines and/or Interface should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FIXX@hbsslaw.com and/or TILE@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895