Levi & Korsinsky Launches Class Action for Capricor Therapeutics Investors Seeking Compensation

Class Action Against Capricor Therapeutics: What You Need to Know

On August 8, 2025, Levi & Korsinsky, LLP announced the initiation of a class action lawsuit against Capricor Therapeutics, Inc. (listed on NASDAQ as CAPR). This legal action seeks to recover losses incurred by investors who allegedly fell victim to securities fraud between October 9, 2024, and July 10, 2025.

What Prompted the Class Action?

The class action arises from claims that Capricor Therapeutics provided misleading information regarding its lead cell therapy candidate, deramiocel. This drug was intended to treat cardiomyopathy related to Duchenne muscular dystrophy (DMD). Specifically, the lawsuit accuses the company of making overly positive statements about its ability to secure a Biologics License Application (BLA) from the U.S. Food and Drug Administration (FDA).

Among the allegations, it is claimed that while Capricor reassured investors of its promising data, it simultaneously concealed critical facts regarding the safety and efficacy of deramiocel, particularly from the HOPE-2 trial. The complaint asserts that these misleading representations significantly influenced the company’s stock price.

Key Developments and Stock Response

On July 11, 2025, Capricor announced it had received a Complete Response Letter (CRL) from the FDA, stating that the BLA did not meet statutory requirements for substantial evidence of effectiveness and highlighted the necessity for additional clinical data. Following this discouraging news, Capricor’s stock price plummeted from $11.40 per share on July 10 to $7.64 the next day, marking a substantial loss for investors.

Investors' Rights and Next Steps

Investors who suffered losses in Capricor during the specified timeframe have until September 15, 2025, to request the court to appoint them as lead plaintiffs. Importantly, participating in the class action does not demand serving as a lead plaintiff to potentially benefit from any awarded recovery.

Levi & Korsinsky has indicated that if individuals meet the class member criteria, they might be eligible for compensation with no upfront costs involved. The law firm stresses that taking part in this legal process incurs no financial obligations.

Why Levi & Korsinsky?

With over two decades of experience, Levi & Korsinsky is recognized for securing significant settlements for shareholders in complex securities litigation. The firm has a strong track record, consistently ranking among the top securities litigation firms, and is equipped with a team of over 70 professionals dedicated to representing investors' interests.

Contact Information

For those affected by the alleged fraud, additional information can be obtained by reaching out to Joseph E. Levi, Esq., or Ed Korsinsky, Esq. at Levi & Korsinsky, LLP. They can be contacted via email at [email protected] or by phone at (212) 363-7500. Interested parties are encouraged to follow this link for further details: https://zlk.com/pslra-1/capricor-therapeutics-inc-lawsuit-submission-form-2?prid=160200wire=4.

If you're a Capricor investor feeling the impact of this recent downturn or believe you may have been misled, now is the time to seek advice and consider participation in this class action suit.

In summary, the class action against Capricor Therapeutics highlights critical issues regarding corporate transparency and the responsibilities of companies to their investors. As this case unfolds, it serves as a stark reminder of the importance of due diligence in investment decisions.