Key Takeaways:
Levi & Korsinsky announced an investigation into Biogen Inc. (NASDAQ: BIIB) for potential securities law violations, following a sharp stock decline after the company’s Phase 2 CELIA trial data for diranersen missed its primary endpoint. The news sent Biogen shares down 6.4% on May 14, prompting the law firm to scrutinize the company’s disclosures to investors.
"Shareholders who suffered losses on their BIIB investment may be entitled to compensation without payment of any out-of-pocket fees or expenses," said Joseph E. Levi, Esq., of SueWallSt.com, in a statement encouraging affected investors to come forward.
The investigation centers on topline data from the Phase 2 CELIA trial released on May 14. The trial did not meet its primary endpoint, which was designed to assess a dose-response for the change from baseline on the Clinical Dementia Rating–Sum of Boxes (CDR-SB) at Week 76. Despite the setback, Biogen has stated its intention to advance diranersen to registrational development.
The 6.4% drop in Biogen's stock price on May 14 has put the company's clinical trial disclosures under a microscope. The investigation by Levi & Korsinsky will focus on whether Biogen may have omitted material information or made misleading statements regarding the trial's prospects, which investors may have relied upon when making their investment decisions. The law firm is gathering information from investors who purchased BIIB stock before the May 14 data release.
This investigation comes at a complex time for the biotechnology giant. While the CELIA trial news was a setback, Biogen recently reported better-than-expected Q1 2026 results, with non-GAAP earnings per share of $3.57, beating the consensus estimate of $2.95. The company also raised its full-year 2026 non-GAAP EPS guidance to a range of $14.25–$15.25.
Much of the recent positive momentum has been driven by the commercial uptake of its Alzheimer’s therapy Leqembi, which generated $168 million in global in-market sales in Q1 2026, a 74% increase from the prior-year period. Analyst firm Goldman Sachs recently raised its price target on Biogen from $238 to $250, citing the strong Leqembi sales and the potential of the company's next-generation Alzheimer's pipeline. However, the company's legacy multiple sclerosis franchise continues to face headwinds from competition and patent expiries.
The securities fraud investigation introduces a new layer of risk for Biogen investors. If the investigation proceeds to a class-action lawsuit, it could result in significant financial penalties and further reputational damage. Investors will be closely watching for any updates from Levi & Korsinsky as well as Biogen's next earnings report for further details on the diranersen program and the financial impact of the investigation.
This article is for informational purposes only and does not constitute investment advice.
