Robbins LLP Calls on Investors to Join CRBU Class Action Amid Allegations of Misleading Information

Robbins LLP Reminds Investors of the CRBU Class Action

On January 9, 2025, Robbins LLP announced a class action lawsuit on behalf of investors who purchased shares of Caribou Biosciences, Inc. (NASDAQ: CRBU) within the period from July 14, 2023, to July 16, 2024. Caribou, a clinical-stage biopharmaceutical firm, is focused on developing innovative genome-edited therapies for treating hematological malignancies, both in the U.S. and internationally.

Understanding the Allegations

The firm states that the allegations stem from claims made by Caribou about the safety and efficacy of its leading therapeutic candidate, CB-010. According to the lawsuit, Caribou had apparently misled investors by overstating the safety, efficacy, and longevity of CB-010 when compared to established autologous CAR-T cell therapies. Furthermore, the lawsuit highlights that the company may have been under substantial financial strain, implying it lacked adequate liquidity to support its ongoing operations, especially related to preclinical research for its CAR-NK platform.

As detailed in the complaint, on June 2, 2024, Caribou issued a press release claiming promising updated clinical data from its ongoing ANTLER Phase 1 trial. The release suggested that a single dose of their lead candidate CB-010 could potentially rival established therapies, which led Evercore ISI analysts to downgrade their forecasts for the company's stock dramatically from $13 to a mere $3. Following this announcement, Caribou's stock plummeted by over 25% within days, closing at $2.145 per share.

The situation worsened when, on July 16, 2024, Caribou's SEC filing revealed a discontinuation of its preclinical research on the CAR-NK platform and a 12% workforce reduction. This news also impacted the stock negatively, which fell another 3.3% on the following day.

What Investors Should Do Now

Eligible shareholders who wish to join the class action as lead plaintiffs must file their application with the court by February 24, 2025. Lead plaintiffs will represent the entire class in the litigation process. Notably, it's important to highlight that participation in the case is not necessary to qualify for any potential recoveries. Investors opting to remain passive can simply be classified as absent members of the case.

Why Involvement is Crucial

Robbins LLP operates on a contingency fee basis, ensuring that shareholders incur no upfront fees or expenses while pursuing their claims. Their commitment to shareholder rights has been consistent since 2002, aiming to facilitate recovery of losses and enhancing corporate governance.

For those affected, participating in this litigation could offer a route to recover losses stemming from investments in Caribou’s stock under potentially misleading pretenses. Investors who want more information can reach out directly via phone or by submitting an inquiry through Robbins LLP's website.

In summary, the class action against Caribou Biosciences aims to address serious allegations of investor deception regarding the company's core assurances about its therapies. As the timeline progresses, shareholders are urged to stay informed and consider their options to participate in this significant case.