Overview

A class action lawsuit has been filed against Metagenomi, Inc. (“Metagenomi” or the “Company”) (NASDAQ: MGX) and certain of the Company’s former senior executive officers alleging violations of the federal securities laws.  The Metagenomi class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired stocks pursuant and/or traceable to Metagenomi’s registration statement for the initial public offering held between February 9 and 13, 2024 (the “Class Period”).  Investors have until November 25, 2024, to seek appointment as lead plaintiff in the Metagenomi class action lawsuit.

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 product-by-licensed product agreement.

Under the terms of the collaboration, Metagenomi and Moderna planned to advance a series of in vivo gene editing therapeutics against undisclosed targets.  Notably, Metagenomi was to utilize its gene editing systems in combination with Moderna’s mRNA and LNP technologies, to develop and produce next-generation therapies for genetic diseases.  As per the agreement, Metagenomi was to receive an upfront cash payment and was eligible to receive certain target option exercise fees as well as development, regulatory, and commercial milestone payments, plus tiered royalties on net sales of any products that were commercialized by Moderna.  Moderna also agreed to make an equity investment in Metagenomi in the form of a convertible note.

The Metagenomi class action lawsuit alleges that Metagenomi completed its initial public offering on February 13, 2024, selling 6.25 million shares at $15 per share.  However, less than three months later, on May 1, 2024, Metagenomi announced that it and Moderna had “mutually agreed to terminate their collaboration” agreement.  An analyst reported on the announcement, noting that the news was surprising, as was its timing.  The analyst also noted that the partnership Metagenomi had with Moderna was a critical part of the core thesis and that losing this partnership during this early stage in development raised more questions than answers.  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.

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If you purchased or otherwise acquired stocks pursuant and/or traceable to Metagenomi’s registration statement for the initial public offering held between February 9 and 13, 2024, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as a lead plaintiff in the Metagenomi class action lawsuit is November 25, 2024.