Pomerantz Law Firm Files Class Action Against Sana Biotechnology, Inc. for Securities Violations
On April 28, 2025, Pomerantz LLP announced it has filed a class action lawsuit against Sana Biotechnology, Inc. and certain executives. This lawsuit, lodged in the United States District Court for the Western District of Washington (docket number 25-cv-00512), represents a significant step for investors who purchased or acquired Sana's securities between March 17, 2023, and November 4, 2024. The class action aims to recover damages stemming from the alleged breaches of federal securities laws by the defendants, specifically under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. For those who might qualify as class members, the deadline to apply for lead plaintiff status is May 20, 2025.
Sana Biotechnology is a biotechnology firm focused on developing innovative cell engineering therapies to address critical health challenges in areas such as oncology, diabetes, central nervous system disorders, and autoimmune diseases. Key products under development include SC291 for treating B-cell malignancies, SC379 for specific CNS disorders, and SG299, a part of the fusion technology for gene delivery related to hematological conditions. Throughout the class period, the company appeared optimistic about its financial standing and the advancement of its product candidates, often asserting their commitment to financing significant programs like SC291, SC379, and SG299.
Unfortunately, the lawsuit alleges that Sana's management and executives made several materially misleading statements about the company’s financial situation and the viability of its clinical candidates. These claims included assurances about their financial capability to support ongoing operations while progressing with their product candidates, which were later proven to be inaccurate. The complaint contends that leadership failed to disclose that the firm was facing significant financial difficulties that jeopardized its ability to fund ongoing operations and advance certain product candidates.
The company’s financial troubles came to light when, on October 10, 2023, Sana announced a strategic shift that involved reducing expenditure on the fusogen platform while increasing focus on the ex vivo cell therapy platform. This move included delaying the SG299 IND submission and a decision to cut its workforce by 29%. In conjunction with these announcements, CEO Steven D. Harr stated the need for a financeable cost structure and emphasized the importance of clinical data across multiple drug candidates to sustain the company’s financial health moving forward. Following this revelation, Sana’s stock dropped by nearly 9%.
In a further development on November 4, 2024, it was revealed that Sana would suspend the development of both the SC291 and SC379 programs in favor of concentrating resources on its type 1 diabetes initiative. This strategic pivot raised concerns and led to another significant fall in stock price, furthering investor anxiety.
Pomerantz LLP, recognized as a leader in corporate and securities class action litigation, urges investors affected by these alleged violations to come forward. With over 85 years of experience in protecting class members’ rights in the face of securities fraud and misconduct, Pomerantz has secured billions of dollars in damages for investors.
For those interested in discussing this lawsuit or to review the full complaint, we advise contacting Danielle Peyton at Pomerantz LLP at [email protected] or via phone at 646-581-9980. Furthermore, interested parties are encouraged to visit www.pomerantzlaw.com for additional resources and information regarding participation in this class action lawsuit.