Investigation into Capricor Therapeutics
Faruqi & Faruqi, LLP, a prominent national securities law firm, has recently launched an investigation concerning potential claims against Capricor Therapeutics, Inc. This inquiry particularly targets investors who may have suffered losses exceeding $50,000 between October 9, 2024, and July 10, 2025. The firm urges affected individuals to connect with them to explore their legal rights and possible courses of action.
On July 23, 2025, Faruqi & Faruqi announced critical details surrounding the ongoing investigation, while also reminding investors of the approaching deadline for filing a lead plaintiff role in a federal securities class action against the company, set for September 15, 2025. This step is vital for any investor looking to participate actively in seeking redress.
Background of the Case
The allegations stem from a complaint suggesting that Capricor and its executives may have violated federal securities laws. Investors were provided with misleading information regarding the company’s lead cell therapy candidate, deramiocel, which is aimed at treating cardiomyopathy linked to Duchenne muscular dystrophy (DMD). The complaint asserts that despite overly positive statements about obtaining a Biologics License Application (BLA) from the U.S. Food and Drug Administration (FDA), there were significant misrepresentations about the safety and efficacy data from Capricor's Phase 2 HOPE-2 trial study of the drug.
On July 11, 2025, Capricor disclosed a Complete Response Letter (CRL) from the FDA. This letter indicated that the BLA did not meet the statutory requirements for substantial evidence of effectiveness and highlighted the necessity for additional clinical data. Following this disclosure, Capricor’s stock price suffered a dramatic decline from $11.40 on July 10, 2025, to $7.64 the following day.
The Role of the Lead Plaintiff
In a federal securities class action, the court will appoint a lead plaintiff based on who has the largest financial interest in the case and is also a typical representative of the class. Investors can choose to move forward as lead plaintiffs or opt to remain absent class members. However, the choice does not influence an individual’s potential recovery.
Faruqi & Faruqi further encourages any individuals who may have insights into Capricor's operations, including whistleblowers and former employees, to come forward with information that could aid the investigation. This proactive approach is crucial in holding companies accountable for any wrongdoing against their investors.
Taking Action
Investors affected by the situation are strongly encouraged to reach out to Faruqi & Faruqi. Partner Josh Wilson is available for direct consultations and can be reached at 877-247-4292 or 212-983-9330 (Ext. 1310). Alternatively, more detailed information on this case, including the full contents of the allegations, can be accessed at www.faruqilaw.com/CAPR.
As the investigation unfolds and as legal proceedings develop, affected investors are urged to stay informed and act accordingly to safeguard their rights. Updates regarding any developments can be monitored through popular social media platforms, including LinkedIn and X.
Faruqi & Faruqi, established in 1995, has recovered significant amounts for investors and boasts offices across New York, Pennsylvania, California, and Georgia. Their longstanding commitment to investor rights continues to be a hallmark of their practice, as they help individuals navigate the complexities of securities litigation.
This announcement constitutes attorney advertising, and the law firm is committed to maintaining confidentiality and providing tailored legal guidance to those involved. The firm's past results do not guarantee similar outcomes in future cases, and they are ready to discuss any particular legal matter in a private setting.