| COMPANY |
Gritstone bio, Inc. |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
3:24-cv-03640 |
| JUDGE |
The Hon. Jacqueline Scott Corley |
| CLASS PERIOD |
March 9, 2023 through February 29, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS AUGUST 6, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
A class action lawsuit has been filed on behalf of those who purchased or acquired Gritstone bio, Inc. (“Gritstone”) (NASDAQ: GRTS) securities between March 9, 2023 and February 29, 2024, both dates inclusive (the “Class Period”).
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"). In a press release announcing the Phase 2b CORAL Study, Gritstone stated that the contract "provides strong validation of [its] innovative vaccine platform in infectious diseases," that execution of the study would be fully funded by BARDA, and that the Phase 2b CORAL Study would be expected to launch in the first quarter of 2024.
On February 12, 2024, Gritstone issued a press release announcing that the company was delaying the launch of the Phase 2b CORAL Study until Fall 2024 to purportedly "allow use of fully GMP-grade raw materials in the vaccine, which is expected to increase the regulatory utility of the trial."
Then, on February 29, 2024, Gritstone issued a press release "announc[ing] an approximately 40% reduction of its workforce," stating that "[t]he move comes 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."
Following this news, Gritstone's stock price fell $0.78 per share, or 27.86%, to close at $2.02 per share on March 1, 2024.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Gritstone would be unable to launch the Phase 2b CORAL Study in the timeframe it had represented to investors; (2) the foregoing would impair Gritstone’s ability to obtain external funding in connection with the Phase 2b CORAL Study, thereby negatively affecting Gritstone’s ability to maintain its balance sheet and cash position; (3) accordingly, Gritstone overstated its ability to successfully develop and commercialize its products; and (4) as a result, Gritstone’s public statements were materially false and misleading at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.