#USA #New York #Class Action #Securities Fraud #Capricor

Capricor Therapeutics Faces Class Action Lawsuit

Capricor Therapeutics, Inc. has recently found itself embroiled in a class action lawsuit spearheaded by the law firm Levi & Korsinsky, LLP. Investors who purchased shares in the company between October 9, 2024 and July 10, 2025 may be impacted by this legal challenge. The lawsuit centers around allegations of securities fraud which, if substantiated, could have significant financial implications for those affected.

Background of the Case

The class action complaint alleges that Capricor misled investors regarding its most promising drug, deramiocel, which is being developed for the treatment of cardiomyopathy associated with Duchenne muscular dystrophy (DMD). Claims made by Capricor’s management suggested that the company was on track to obtain a Biologics License Application (BLA) from the U.S. Food and Drug Administration (FDA). However, these assertions were reportedly made while the company concealed critical adverse information regarding the safety and efficacy of deramiocel from its Phase 2 HOPE-2 trial study.

On July 11, 2025, Capricor made headlines when it publicly disclosed that it had received a Complete Response Letter (CRL) from the FDA. This letter outlined the agency's denial of the BLA, stating that the application did not demonstrate sufficient evidence of the drug’s effectiveness and required additional clinical data. Following this unsettling announcement, Capricor's stock price took a significant hit, plunging from $11.40 per share to $7.64 per share within a day—a stark reminder of how swiftly investor sentiment can shift in the face of negative news.

Legal Protections for Investors

The class action lawsuit allows affected investors to collectively seek compensation for their losses without upfront costs. Those who have suffered financial setbacks due to the allegedly misleading information provided by Capricor have until September 15, 2025, to apply for the position of lead plaintiff—a role that carries no obligation to share in any recovery awarded if the case succeeds.

Joseph E. Levi, the attorney representing the investors, emphasizes that class members can pursue their claims without any payment of out-of-pocket costs or fees. He urges anyone who has suffered losses during the defined time frame to act quickly and ensure their voice is heard in this legal battle.

Why This Lawsuit Matters

The outcome of this lawsuit could set a precedent for similar cases in the biotechnology sector, highlighting the importance of transparency for companies seeking investor support. Levi & Korsinsky has a robust history of securing compensation for shareholders in complex securities litigation, having built a reputation as a leader in this field over the past two decades. They have successfully obtained settlements totaling hundreds of millions of dollars on behalf of aggrieved investors.

As this case progresses, investors and market watchers will be closely monitoring Capricor’s actions and responses to the allegations. With potential ramifications for both Capricor and its shareholders, the unfolding events may serve as a cautionary tale about the risks inherent in investing within the volatile biotech landscape.

For more information or to participate in the class action, interested investors can visit Levi & Korsinsky’s official website or reach out directly to their team via email or phone.

In conclusion, the Capricor Therapeutics class action lawsuit illustrates the vital need for transparency and accountability in the biotechnology industry. As investors seek to understand the implications of this case, the legal outcome may significantly shape the future of how investor relations are handled in this increasingly scrutinized field.