Have you suffered losses investing in Zafgen? Did you purchase the investment at the recommendation of a financial advisor? If so, the securities attorneys of The White Law Group may be able to help you recover your losses through a FINRA arbitration claim against your brokerage firm or advisor.
According to its website, Zafgen is a biopharmaceutical company dedicated to significantly improving the health and well-being of patients affected by obesity and complex metabolic disorders.
On October 15, 2015, the Food and Drug Administration placed a partial clinical hold on beloranib, the main product of Zafgen. On that news, the price of the Company’s common stock fell to a close of $10.36 per share on October 16, 2015, from a close of $21.02 per share on the previous day. This 50% decline resulted in a market capitalization loss of $288 million.
On December 2, 2015, the shares once again plummeted after the Company announced that a second patient died during a late-stage trial of its beloranib drug. The shares of Zafgen were trading $6.50, down $9.43, intraday. The shares traded at $47.98 as recently as September 21, 2015.
Several law firms are already pursuing class actions against Zafgen. The White Law Group is investigating the liability that brokerage firms may have for making bad, high-risk bets on Zafgen.
If your financial advisor over-concentrated your portfolio in Zafgen causing you to lose a substantial amount of money, you may have a viable claim to recover your losses. Financial advisors are required to make suitable investment recommendations, accounting for your age, income, net worth, investment experience, and investment objectives. Diversification is the key to reducing risk. As such, over-concentrated exposure to any investment can be unsuitable for many investors.
If you lost money investing in Zafgen and would like to discuss your litigation options, please call the securities arbitration attorneys of The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm and its representation of investors in FINRA arbitration claims, visithttps://www.whitesecuritieslaw.com.