Robbins LLP Initiates Class Action Lawsuit Against Iovance Biotherapeutics Inc.

Robbins LLP Initiates Class Action Lawsuit against Iovance Biotherapeutics Inc.

On May 16, 2025, Robbins LLP announced a class action lawsuit targeting Iovance Biotherapeutics, Inc. (NASDAQ: IOVA) on behalf of investors who purchased company securities between May 9, 2024, and May 8, 2025. As a biopharmaceutical firm concentrated on developing cell therapies for serious conditions like metastatic melanoma, Iovance has attracted a considerable amount of investor interest. However, recent events have raised significant concerns regarding its business operations and stock performance.

The Allegations

The lawsuit centers around allegations that Iovance failed to disclose crucial information regarding its operational capabilities. Specifically, the complaint claims that the following issues were omitted during the class period:

1. Delayed Treatment Center Launches: New Authorized Treatment Centers (ATCs) took longer than expected to begin administering treatments, hindering the rollout of their flagship therapy, Amtagvi.
2. Ineffectiveness in Patient Management: Iovance’s sales team, along with the new ATCs, struggled with identifying and selecting patients for Amtagvi therapies. This inefficiency resulted in higher dropout rates among potential patients, affecting overall treatment uptake.
3. Financial Implications: These operational inefficiencies culminated in inflated costs and diminished revenue, as the ATCs could not keep pace with the manufacturing output.
4. Misleading Communications: Due to the issues stated above, the company’s optimistic statements regarding business outlook and performance became misleading and inaccurate.

Financial Fallout

The implications of these shortcomings came to light when Iovance released its first-quarter earnings report for 2025. The company revealed a stark decline in product revenue—$49.3 million, down from $73.7 million in the previous quarter. Additionally, Iovance dramatically revised its revenue forecasts for the fiscal year 2025, cutting expectations from $450-$475 million down to just $250-$300 million, resulting in a staggering over 40% reduction in anticipated financial performance.

The company attributed these changes to its revised understanding of how quickly new ATCs could ramp up their operations. As a result, Iovance’s stock price plummeted, closing at $1.75 per share on May 9, 2025—a drop of 44.8%, equating to a loss of $1.42 per share.

Next Steps for Shareholders

Investors who believed they were misled may have a chance to participate as lead plaintiffs in the class action lawsuit. The deadline to submit documentation to be considered for this role is July 14, 2025. As a lead plaintiff, an investor will serve as a representative for all class members, overseeing the litigation process. However, it’s essential to note that individuals can still qualify for potential recovery without actively participating in the lawsuit. For those concerned about involvement, they can remain as absent class members and monitor case developments.

About Robbins LLP

Robbins LLP is renowned for its advocacy on behalf of shareholders. Since 2002, the firm has dedicated itself to protecting investor rights, recovering losses, and ensuring that corporate governance standards are upheld. The attorneys at Robbins LLP are encouraging any investors impacted by Iovance's alleged misrepresentation to reach out for further information.

This class action highlights the importance of transparency in corporate operations and serves as a reminder that investors must remain vigilant about the financial health and operational integrity of the companies in which they invest. Whether or not you participate in this case, it is a critical moment for Iovance shareholders as they navigate these troubling developments.

For those wishing to stay informed about this case and similar ones, options are available for free alerts and updates from Robbins LLP.