Pomerantz Law Firm Calls Attention to Class Action Lawsuit Against Caribou Biosciences, Inc.

Shareholder Alert: Class Action Lawsuit Against Caribou Biosciences, Inc.

Pomerantz Law Firm has issued an alert regarding a class action lawsuit against Caribou Biosciences, Inc. (NASDAQ: CRBU). This lawsuit, filed in the United States District Court for the Northern District of California, is aimed at protecting the interests of shareholders who acquired Caribou securities during the period from July 14, 2023, to July 16, 2024. This is vital for investors who have experienced losses due to alleged misleading information released by the company.

Overview of the Class Action

The class action lawsuit has been docketed under number 24-cv-09413. It pertains to all individuals and entities, excluding the company’s defendants, who purchased shares of Caribou during the aforementioned class period. The legal action seeks to recover damages incurred as a result of the company’s alleged violations of federal securities laws, specifically under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Rule 10b-5.

If you are a shareholder who acquired Caribou securities within the specified timeline, it is essential to note the deadline for appointing a Lead Plaintiff—to act on behalf of the class. Interested shareholders must file their motion by February 24, 2025. Further details regarding the complaint can be found at Pomerantz Law Firm. Shareholders are encouraged to disclose their purchase details including contact information when inquiring about the class action.

About Caribou Biosciences, Inc.

Caribou is a biopharmaceutical firm currently engaged in developing innovative genome-edited allogeneic cell therapies targeted at treating hematologic malignancies. It utilizes advanced chimeric antigen receptor (CAR) therapies, particularly focusing on CAR-T and CAR-natural killer (CAR-NK) cell platforms. The nature of these allogeneic therapies enables a more efficient process compared to autologous methods where a patient’s own cells are used.

Among Caribou’s notable product candidates is CB-010, an allogeneic anti-CD19 CAR-T therapy, currently undergoing evaluation in a Phase 1 trial known as ANTLER, which specifically targets patients with relapsed or refractory large B-cell leukemia, particularly second-line large B-cell lymphoma.

Allegations Against Caribou

The allegations within the complaint suggest that during the class period, the defendants made materially false statements regarding the company’s business, prospects, and operations. Noteworthy claims include allegations of overstating the safety and efficacy of CB-010 relative to established autologous CAR-T therapies. Furthermore, there are claims that Caribou was significantly underfunded in terms of cash and liquidity required to sustain its operations and development activities.

On June 2, 2024, Caribou published updates on its clinical trial data, purportedly showing that CB-010 might compete with existing CAR-T therapies. However, analysts from Evercore ISI responded by downgrading their stock recommendation, indicating skepticism about the competitiveness of Caribou's therapy. Following these revelations, Caribou’s stock price saw a decline, plummeting by over 25% shortly thereafter.

In a shocking development, on July 16, 2024, Caribou announced the discontinuation of its preclinical research into its allogeneic CAR-NK platform while also laying off approximately 12% of its workforce. This news had an immediate negative impact on the stock price, demonstrating further evidence of the challenges within the company.

About Pomerantz LLP

Pomerantz LLP is a well-regarded law firm specializing in corporate, securities, and antitrust class litigation, recognized for its significant impact over the last 80 years in advocating for victims of corporate misconduct and securities fraud. With offices in prominent cities including New York, Chicago, and London, Pomerantz has successfully recovered billions in damages for its clients. For more information, visit their website at pomlaw.com.

Conclusion

Investors who believe they have suffered losses during the designated class period should promptly seek legal counsel. The upcoming deadline for filing as Lead Plaintiff in the class action against Caribou is crucial for shareholders to recover their investments effectively. Stay informed and act responsibly to safeguard your rights as an investor.