Watertown Biotech Company Being Investigated for Breach of Fiduciary Duties

The following piece came from Shareholders Foundation:

An investigation was announced over possible breaches of fiduciary duties by certain directors at SQZ Biotechnologies Company.

Investors who purchased shares of SQZ Biotechnologies Company (NYSE: SQZ) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779-1554.

The investigation by a law firm concerns whether certain SQZ Biotechnologies directors breached their fiduciary duties and caused damage to the company and its shareholders.

Watertown, MA based SQZ Biotechnologies Company, a clinical-stage biotechnology company, develops cell therapies for patients with cancer, autoimmune, infectious diseases, and other serious conditions. SQZ Biotechnologies Company reported that its annual Total Revenue rose from $20.99 million in 2020 to $27.09 million in 2021, and that its Net Loss increased from $50.52 million in 2020 to $68.74 million in 2021.

On or around October 29, 2022, SQZ Biotechnologies Company conducted its initial public offering (“IPO”), selling 4,411,765 shares priced at $16.00 per share.

Then, on December 1, 2022, SQZ Biotechnologies Company issued a press release “announc[ing] that Armon Sharei, PhD, Chief Executive Officer at SQZ Biotechnologies, will step down from his role as CEO and the Board of Directors, effective immediately,” and that the Company will reduce its workforce /by roughly 60% as it “pause[s] its APC, Activating Antigen Carrier (AAC) and Tolerizing Antigen Carrier (TAC) programs.”

Shares of SQZ Biotechnologies Company (NYSE: SQZ) declined to as low as $1.41 per share on December 5, 2022.

Those who purchased shares of SQZ Biotechnologies Company (NYSE: SQZ) have certain options and should contact the Shareholders Foundation.