Gritstone bio, Inc.
Case Overview
54 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 09/06/2024 |
Status: | Status: Investigating |
Company Name: | Company Name: Gritstone bio, Inc. |
Court: | Court: Northern District of California |
Case Number: | Case Number: 3:24cv03640 |
Class Period: | Class Period: 03/09/2023 - 02/29/2024 |
Ticker: | Ticker: GRTS |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Gritstone bio, Inc. Company (“Gritstone” or the “Company”) (NASDAQ: GRTS) securities during the period of March 9, 2023 and February 29, 2024, inclusive (“the Class Period”). Investors have until August 6, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On February 12, 2024, Gritstone issued a press release announcing that the Company was delaying the launch of the 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." On this news, the price of Gritstone shares declined by $0.78 per share, or approximately 27.86%, to close at $2.02 per share on March 1, 2024.
The lawsuit alleges 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; (iii) accordingly, Gritstone overstated its ability to successfully develop and commercialize its products; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.
The lawsuit alleges 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; (iii) accordingly, Gritstone overstated its ability to successfully develop and commercialize its products; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.