Achaogen Files Chapter 11 Bankruptcy Protection
Have you suffered losses investing in Achaogen? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Achaogen, Inc. (Nasdaq: AKAO), a biopharmaceutical company developing and commercializing innovative antibacterial agents to address multi-drug resistant (MDR) gram-negative infections, reportedly filed for bankruptcy protection on April 15, 2019, according to a press announcement.
Achaogen’s reported financial challenges were in connection with the business of marketing antibiotics. Many drugmakers are reportedly leaving the industry after the rise of antimicrobial resistance as a leading public health threat.
The company’s antibiotic Zemdri, was reportedly approved by the Food and Drug Administration in June 2018, yet Achaogen reportedly entered bankruptcy less than a year later, “despite multiple reductions to its workforce and R&D ambitions,” according to an article in BioPharma Dive.
Recovery of Investment Losses
The problem with biopharmaceutical stocks such as Achaogen is that they typically involve a high degree of risk. The research and development process for pharma companies often involves costly and lengthy clinical testing trials that yield specific data. If the expected data or end points are not met, the stock can drop drastically.
Without a strong understanding of the company and its basic operations, investors may be looking at serious losses.
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk biopharma stocks, like Achaogen to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you have concerns regarding investment losses in Achaogen, please call the securities attorneys at The White Law Group for a free consultation at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.