A securities class action has been filed in the USDC — N.D.CA. against Metagenomi, Inc. (MGX) (“Metagenomi” or the “Company”), on behalf of all shareholders that purchased stock pursuant and/or traceable to registration statement for the initial public offering held between February 9 and 13, 2024.

Metagenomi introduced itself to investors during its initial public offering as a “genetic medicines company” having a long-standing business relationship with Moderna, one of the leading Covid-19 vaccine companies. Integral to Metagenomi’s collaboration with Moderna was the claim that the two companies had entered into a Strategic Collaboration and License Agreement on October 29, 2021, which included multiple four-year research programs and a subsequent licensed product-by-licensed product agreement.

Defendants heavily featured details and the benefits of Metagenomi’s collaboration with Moderna in its issued prospectus and initial public offering. The initial public offering represented to the public that the collaboration between Metagenomi and Moderna would be lasting and would potentially lead to breakthrough scientific technologies and therapeutics.

The complaint alleges that contrary to these representations, Metagenomi’s collaboration with Moderna would not extend into the future but instead terminate in the immediate future. In fact, on May 1, 2024, Metagenomi announced that it and Moderna had “mutually agreed to terminate their collaboration” agreement. Given the tenuous state of the collaboration agreement, Defendants’ statements in Metagenomi’s registration statement were false and/or materially misleading at the time of the initial public offering.

In response to the news, Metagenomi’s stock price declined from $7.04 per share on May 1, 2024 to $6.17 per share on May 2, 2024, thereby harming investors.

If you purchased Metagenomi stock pursuant and/or traceable to the registration statement for the initial public offering and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.

About Lowey Dannenberg

Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.