Investors Urged to Join Class Action Against Capricor Therapeutics Amid Securities Violations

Investors Encouraged to Act Against Capricor Therapeutics

In a recent development that has captured attention in the financial community, shareholders who have experienced losses in Capricor Therapeutics, Inc. are being urged to come forward and join a class action lawsuit against the company. This opportunity is being facilitated by the national securities law firm, Faruqi & Faruqi, LLP, which has a long-standing reputation for representing investors and fighting for their rights in the realm of securities law.

Background on Capricor Therapeutics

Capricor Therapeutics, listed on NASDAQ under the ticker symbol CAPR, has come under scrutiny following allegations that the company, along with its executives, engaged in practices that possibly violated federal securities laws. Investors are encouraged to participate in the class action if they suffered losses exceeding $50,000 during the period from October 9, 2024, to July 10, 2025.

The firm is presently investigating potential claims that indicate Capricor may have misled its investors regarding the status of its lead product, a cell therapy candidate known as deramiocel. Used for treating cardiomyopathy associated with Duchenne muscular dystrophy (DMD), this drug's expected approval was touted by the company in a manner that may have obscured critical information.

Allegations and Impact on Investors

Faruqi & Faruqi has highlighted the allegations that Capricor and its executives provided false or misleading statements regarding the progress and efficacy of deramiocel. In particular, it was claimed that they inadequately disclosed crucial details about safety and efficacy data from its Phase 2 HOPE-2 trial study for the drug, while simultaneously promoting optimism about obtaining a Biologics License Application (BLA) from the U.S. Food and Drug Administration (FDA).

On July 11, 2025, the situation took a downturn when Capricor publicly acknowledged receiving a Complete Response Letter (CRL) from the FDA, which denied the BLA due to insufficient evidence of effectiveness and the need for further clinical data. This news caused a significant drop in Capricor’s stock price, plummeting from $11.40 on July 10 to $7.64 the following day. Such a drastic fall has understandably alarmed shareholders, prompting them to consider their options regarding potential recovery.

The Role of the Lead Plaintiff

In the context of a class action lawsuit, the role of the lead plaintiff is pivotal. This individual is typically an investor who has sustained the largest financial loss and is willing to oversee the case on behalf of all affected shareholders. While individuals can opt to apply for this role and work through their legal representatives, participation in the action does not require an investor to take a lead role in order to benefit from any potential recovery.

Call for Communications

Faruqi & Faruqi, LLP is actively encouraging any member of the affected group, including whistleblowers and former employees, to bring forward any relevant information that could aid in the proceedings against Capricor. Investors seeking to determine eligibility for participation in the class action are invited to visit the firm’s dedicated webpage or contact the securities litigation partner, James (Josh) Wilson, directly.

This situation underscores the high stakes involved in the biotech and pharmaceutical sectors, where investor information must be handled with transparency and diligence. As developments unfold, shareholders are advised to stay informed and proactive regarding their rights and the steps they can take to recover their investment losses.