SAN DIEGO, June 24, 2024 (GLOBE NEWSWIRE) –
Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of individuals and entities who purchased or otherwise acquired securities of Gritstone bio, Inc. (NASDAQ: GRTS) between March 9, 2023 and February 29, 2024. Gritstone is a clinical-stage biotechnology company engaged in the development of vaccine-based immunotherapy candidates for cancer and infectious diseases.
For more information, submit a form, email Attorney Aaron Dumas, Jr., or call us at (800) 350-6003.
The accusations: Robbins LLP is investigating allegations that Gritstone bio, Inc. (GRTS) misled investors regarding the initiation of its Phase 2b CORAL trial.
According to the complaint, in September 2023, Gritstone entered into a contract with the Biomedical Advanced Research and Development Authority (“BARDA”) to conduct a 10,000-participant, randomized, double-blind Phase 2b trial to compare the efficacy, safety, and immunogenicity of its COVID-19 vaccine candidate (a samRNA vaccine candidate) to an approved COVID-19 vaccine (the “Phase 2b CORAL Trial” or the “Trial”). In a press release announcing the Trial, the Company stated that the Trial would be fully funded by BARDA and is expected to begin in the first quarter of 2024.
Plaintiff alleges that during the Class Period, Defendants failed to disclose that: (i) the Company was unable to initiate the Phase 2b CORAL Trial within the timeframe disclosed to investors; (ii) doing so would impair Gritstone’s ability to obtain external funding in connection with the Trial and thereby negatively impact Gritstone’s ability to maintain its balance sheet and cash position; and (iii) Gritstone accordingly overstated its ability to successfully develop and commercialize its products.
The lawsuit alleges that on February 12, 2024, Gritstone announced the postponement of the trial start date to fall 2024. Then on February 29, 2024, Gritstone announced a reduction in its workforce by approximately 40% “following the recently announced postponement of the planned CORAL Phase 2b trial, which resulted in Gritstone not receiving external funding that it had originally expected to begin the trial in Q1 2024.” On this news, Gritstone’s stock price fell nearly 28%, trading at $2.02 per share on March 1, 2024.
What now: You may be eligible to participate in the Gritstone bio, Inc. class action lawsuit. Shareholders who wish to serve as lead plaintiff for the class action lawsuit must file their motions with the Court by August 6, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible to receive compensation. If you choose not to take action, you may remain an absent class member. For more information, click here Here.
Representation is on a contingency basis. Shareholders pay neither fees nor expenses.
About Robbins LLP: Some law firms issuing press releases on this matter do not litigate securities class actions; Robbins LLP does. As a recognized leader in shareholder litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures and hold corporate executives accountable for wrongdoing since 2002. Since our founding, we have recovered more than $1 billion for shareholders.
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