NEW YORK, NY / ACCESSWIRE / June 23, 2024 / Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Gritstone bio, Inc. ("Gritstone" or "the Company") (NASDAQ:GRTS) and certain of its officers.
Class Definition:
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Gritstone securities between March 9, 2023, and February 29, 2024, inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/GRTS .
Case Details:
According to the Complaint, Gritstone is a clinical-stage biotechnology company that develops vaccine-based immunotherapy candidates against cancer and infectious diseases.
In September 2023, according to the Complaint, Gritstone entered into a contract with the Biomedical Advanced Research and Development Authority ("BARDA") to run a 10,000 participant, randomized Phase 2b double-blinded study to compare the efficacy, safety, and immunogenicity of its COVID-19 vaccine candidate (a samRNA vaccine candidate) with an approved COVID-19 vaccine (the "Phase 2b CORAL Study" or the "Study"). In a press release announcing the Phase 2b CORAL Study, the Company stated that the contract "provides strong validation of [its] innovative vaccine platform in infectious diseases," that execution of the study would be fully funded by BARDA, and that the Study would be expected to launch in the first quarter of 2024.
The Complaint alleges that throughout the Class Period Gritstone made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Gritstone made false and/or misleading statements and/or failed to disclose that:
(1) the Company would be unable to launch the Phase 2b CORAL Study in the timeframe it had represented to investors;
(2) the foregoing would impair Gritstone's ability to obtain external funding in connection with the Study, thereby negatively affecting Gritstone's ability to maintain its balance sheet and cash position;
(3) accordingly, Gritstone overstated its ability to successfully develop and commercialize its products; and
(4) as a result, the Company's public statements were materially false and misleading at all relevant times.
The truth began to emerge, according to the Complaint, on February 12, 2024, when Gritstone issued a press release announcing that the Company was delaying the launch of the Study until Fall 2024 to purportedly "allow use of fully GMP-grade raw materials in the vaccine, which is expected to increase the regulatory utility of the trial." Then, on February 29, 2024, Gritstone issued a press release "announc[ing] an approximately 40% reduction of its workforce," stating that "[t]he move comes following the recently announced delay of the proposed CORAL Phase 2b study, which resulted in Gritstone not receiving external funding it previously anticipated beginning in 1Q 2024, associated with the initiation of the study."
On this news, Gritstone's stock price fell $0.78 per share, or 27.86%, to close at $2.02 per share on March 1, 2024.
Therefore, the Complaint alleges that as a result of Gritstone's wrongful acts and omissions and the precipitous decline in the market value of the Company's securities, investors have suffered significant losses and damages.
What's Next?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/GRTS or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in Gritstone you have until August 6, 2024, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman:
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller,
332-239-2660 | [email protected]
SOURCE: Bronstein, Gewirtz and Grossman, LLC