#United States #California #Class Action #Pomerantz Law #Geron Corporation

Pomerantz Law Firm Files Class Action Against Geron Corporation

On March 31, 2025, Pomerantz LLP declared the initiation of a class action lawsuit targeting Geron Corporation (NASDAQ: GERN) and several of its officers. The action was initiated in the United States District Court for the Northern District of California, under the docket number 25-cv-02563. This lawsuit aims to represent all individuals and entities, excluding the defendants, who acquired Geron shares between February 28, 2024, and February 25, 2025. Investors are seeking reparations for damages allegedly inflicted due to the defendants' breaches of federal securities regulations.

Class Period Information

Investors who bought Geron securities within the specified class period are urged to reach out by May 12, 2025, if they wish to be designated as the Lead Plaintiff in the case. Interested parties can find the Complaint on the firm's website, Pomerantz Law Firm. Danielle Peyton from Pomerantz LLP is available for discussions around this ongoing matter at the phone number 646-581-9980, or toll-free at 888-4-POMLAW. Interested investors should provide their contact details and the specifics of their purchases via email.

Background on Geron Corporation

Geron is primarily engaged in the development and commercialization of therapeutic solutions for cancer and chronic degenerative conditions. The company's flagship candidate is RYTELO (imetelstat), a telomerase inhibitor targeted at halting the unchecked growth of malignant stem and progenitor cells in myeloid hematologic disorders. Specifically, RYTELO aims to benefit patients suffering from lower-risk myelodysplastic syndromes and intermediate to high-risk myelofibrosis.

The company groups patients eligible for treatment with lower-risk MDS into three categories: first-line patients who cannot use erythropoiesis-stimulating agents (ESAs); second-line patients who have relapsed or are resistant to ESAs; and third-line plus patients who are also relapsed or resistant to ESAs. Geron has emphasized the critical need for therapies in lower-risk MDS—a progressive blood cancer that often results in patients becoming reliant on red blood cell transfusions, consequently affecting their quality of life.

Launch and Approval of RYTELO

RYTELO was commercially launched in June 2024 after receiving approval from the U.S. Food and Drug Administration (FDA) for treating adult patients with lower-risk MDS, specifically those who demonstrate transfusion-dependent anemia. Upon announcing the approval, Geron expressed confidence in RYTELO's potential to provide significant clinical benefits to eligible patients. The company touted its innovative approach in the blood cancer sector, highlighting the dedication of its team and their expertise.

However, Geron also informed that patients receiving RYTELO will undergo regular monitoring—weekly during the initial cycles and as necessary later on—a standard practice in such therapies that the company claims should not overburden healthcare providers.

Allegations and Misleading Statements

The class action complaint alleges that throughout the class period, Geron and its officers made several materially false and misleading statements regarding the company’s operations and future prospects. Specifically, it’s asserted that the defendants downplayed several key challenges, including:

1. Limited awareness of RYTELO among healthcare providers,
2. The burden of the required weekly monitoring,
3. Seasonality and competitive pressures affecting sales.

As a result, the lawsuit suggests that the company’s revenue projections and overall business potential were grossly overstated, misleading investors into an overly positive outlook for the company's future.

Recent Financial Performance

On February 26, 2025, Geron reported its fourth quarter and full year earnings for 2024, revealing an EPS of -$0.04 and revenues of $47.54 million—significantly below analyst estimates. During an earnings call that same day, CEO John A. Scarlett noted the company had experienced stagnant revenue trends, attributing this to the aforementioned factors influencing the demand and sales of RYTELO. Observations from market analysts highlighted shortcomings in Geron's commercialization efforts, leading to a consensus that the company's growth strategies needed reassessment.

Prominent investment firm H.C. Wainwright even downgraded Geron’s stock, citing concerns about the sustainability of sales levels amid competition and a lack of first-time prescriptions for RYTELO, while Barclays significantly revised its price target downwards by 56% due to similarly alarming indications. Following these disclosures, Geron’s stock plummeted by 32.06% in a single day.

Conclusion

As Pomerantz LLP continues to advocate for investors impacted by Geron's alleged actions, they uphold their legacy of holding corporations accountable for misconduct in the securities realm. Known as a pioneer in the field of securities fraud litigation, Pomerantz has dedicated over 85 years to safeguarding the interests of investors. Interested parties who believe they have a claim in this case should act promptly to protect their rights and explore their options for legal recourse.