A securities class action has been filed against Invivyd, Inc. (IVVD) on behalf of all purchasers of Adagio common stock between November 29, 2021 through December 14, 2021.  This case has been filed in the USDC – D. Mass.

Leading up to and throughout the Class Period, defendants repeatedly touted the effectiveness of ADG20 against the original virus strain and all of the then-current variants, and painted the false and misleading picture to the investing public that ADG20 would be just as effective against Omicron as it was against the other variants. These statements had their intended effect, as the price of Adagio common stock skyrocketed from $25.12 per share on November 26, 2021 to $46.83 per share on November 29, 2021, an increase of over 86% on unusually high trading volume.

Then, on December 14, 2021, Adagio issued a press release reporting in vitro results of ADG20 against the Omicron variant (the “December 14 Press Release”). In the December 14 Press Release, only a few weeks after assuring investors of the efficacy against Omicron, Adagio announced that “[t]he in vitro data generated through both authentic and pseudovirus testing of the Omicron variant show a greater than 300-fold reduction in neutralizing activity of ADG20 against Omicron.” In other words, Adagio revealed that the data showed that ADG20 was 300 times less effective at neutralizing Omicron than it was against the other variants. Put simply, the Company admitted that the results showed that ADG20 did not work against Omicron. Defendant Gerngross explained: “‘While the individual mutations present in . . . Omicron . . . were not associated with escape from ADG20 in the context of an original strain of the virus, new data show that the combination of mutations present in the Omicron spike protein led to a reduction in ADG20 neutralization that was not suggested by prior data.’”

As a result of this news, the price of Adagio common stock plummeted from $34.26 per share when the market closed on December 13, 2021, to $7.26 per share when the market closed on December 14, 2021, a nearly 80% decline on unusually heavy volume of over 41 million shares traded. As the market continued to digest the news, the price of Adagio common stock continued to decline, falling to a low of just $5.57 per share by December 15, 2021.