SAN DIEGO, June 08, 2024 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Gritstone bio, Inc. (NASDAQ: GRTS) securities between March 9, 2023 and February 29, 2024. Gritstone is a clinical-stage biotechnology company that engages in developing vaccine-based immunotherapy candidates against cancer and infectious diseases.
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The Allegations: Robbins LLP is Investigating Allegations that Gritstone bio, Inc. (GRTS) Misled Investors Regarding the Initiation of its Phase 2b CORAL Study
According to the complaint, in September 2023, Gritstone entered into a contract with the Biomedical Advanced Research and Development Authority (“BARDA”) to run a 10,000 participant, randomized Phase 2b double-blinded study to compare the efficacy, safety, and immunogenicity of its COVID-19 vaccine candidate (a samRNA vaccine candidate) with an approved COVID-19 vaccine (the “Phase 2b CORAL Study” or the “Study”). In a press release announcing the Study, the Company stated the Study would be fully funded by BARDA and was expected to launch in the first quarter of 2024.
Plaintiff alleges that during the class period, defendants failed to disclose that: (i) the Company would be unable to launch the Phase 2b CORAL Study in the timeframe it had represented to investors; (ii) the foregoing would impair Gritstone’s ability to obtain external funding in connection with the Study, thereby negatively affecting Gritstone’s ability to maintain its balance sheet and cash position; and (iii) accordingly, Gritstone overstated its ability to successfully develop and commercialize its products.
The complaint alleges that on February 12, 2024, Gritstone announced the delay of the launch of the Study until Fall 2024. Then, on February 29, 2024, Gritstone announced an approximate 40% reduction of its workforce “following the recently announced delay of the proposed CORAL Phase 2b study, which resulted in Gritstone not receiving external funding it previously anticipated beginning in 1Q 2024, associated with the initiation of the study. On this news, Gritstone’s stock price fell almost 28%, to close at $2.02 per share on March 1, 2024.
What Now: You may be eligible to participate in the class action against Gritstone bio, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by August 6, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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