#United States #New York #Class Action #Securities Fraud #Capricor Therapeutics

Capricor Therapeutics Faces Lawsuit for Alleged Securities Violations

Capricor Therapeutics, Inc., a biopharmaceutical firm listed on NASDAQ under the ticker symbol CAPR, is currently embroiled in a class action lawsuit that has caught the attention of investors and legal experts alike. The case, filed by well-known law firm Levi & Korsinsky, LLP, pertains to alleged violations of securities laws that occurred between October 9, 2024, and July 10, 2025. This legal action aims to seek compensation for investors who believe they were misled by the company's statements regarding its lead therapy for Duchenne muscular dystrophy (DMD).

The Allegations

At the heart of the lawsuit are claims that Capricor provided false and misleading information about its lead drug candidate, deramiocel, which is intended to treat cardiomyopathy associated with DMD. The complaint alleges that Capricor's management falsely assured investors they would successfully secure a Biologics License Application (BLA) from the U.S. Food and Drug Administration (FDA). Nevertheless, when the FDA issued a Complete Response Letter (CRL) on July 11, 2025, indicating that the application had not met the necessary standards for substantial evidence of effectiveness, Capricor's stock experienced a significant drop in value. The stock plummeted from $11.40 on July 10 to $7.64 the following day, causing substantial financial losses for investors.

The suit argues that while the company communicated optimistic messages about the BLA approval, it simultaneously failed to disclose critical adverse information regarding the long-term safety and efficacy of deramiocel based on the findings from its Phase 2 HOPE-2 trial study.

Timeline and Important Dates

For affected investors, a key date looms ahead. Claims must be submitted by September 15, 2025, to be considered for lead plaintiff status in the ongoing legal proceedings. Importantly, being appointed as a lead plaintiff is not a prerequisite for obtaining any potential compensation.

No Financial Risk to Investors

Interestingly, the law firm represents class members without any upfront costs—meaning eligible investors can participate without facing financial burdens. This has drawn many individuals seeking justice for their investments gone wrong.

Levi & Korsinsky has a robust history of representing investors, boasting a track record of recovering hundreds of millions of dollars in securities litigation. With a specialized team dedicated to complex securities cases, the firm is ideally positioned to handle this significant lawsuit against Capricor.

Next Steps for Investors

Investors affected by the alleged misconduct are encouraged to reach out to Levi & Korsinsky for more information on how to proceed. They can either fill out a contact form or directly get in touch via email or phone. The firm assures potential clients that their situation will be evaluated with care, providing every group member with the chance to recover some losses linked to the alleged securities fraud.

Conclusion

The developments surrounding this case are crucial for the future of Capricor Therapeutics and its investors. With the class action lawsuit now a focal point for many, the next steps taken by both the company and its investors will inevitably shape the narrative of this significant legal battle. The Lamp of Justice remains lit as the case unfolds, shedding light on the often complex intersection of healthcare, biotechnology, and investor rights.