INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Caribou Biosciences, Inc. (NASDAQ: CRBU) Shareholders
NEWTOWN, PA, February 24, 2023 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers and holders of Caribou Biosciences, Inc. (“Caribou” or the “Company”) (NASDAQ: CRBU) common stock.
Investors who purchased Caribou common stock pursuant and/or traceable to the offering documents and related Registration Statement issued in connection with the Company’s July 23, 2021 IPO and/or between July 23, 2021, and December 9, 2022, inclusive (the “Class Period”) may move the U.S. District Court for the Northern District of California to appoint them as lead plaintiff, no later than April 11, 2023. Current holders of Caribou stock may pursue corporate governance reforms. Investors who wish to discuss Caribou stock should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Caribou Biosciences, Inc.
Caribou is a late-stage biopharmaceutical company that engages in the development of genome-edited off-the-shelf immune cell therapies for the treatment of cancer. The Company claims cell therapies are critical now and for the future of cancer therapy and that advanced genome testing is necessary to develop sophisticated cell therapies to treat a multitude of malignancies. Caribou is developing, among other product candidates, CB-010, an allogeneic anti-CD19 CAR-T cell therapy that is in a Phase 1 clinical trial, referred to as “ANTLER”, to treat relapsed or refractory B cell non-Hodgkin lymphoma (“r/r B-NHL”).
The Securities Fraud Claims
Pursuant to the Offering Documents, Caribou issued 19 million shares of common stock to the public at the offering price of $6.00 per share for proceeds of $282 million, before expenses, and after applicable underwriting discounts. The offering documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the regulations governing their preparation.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the Offering Documents and Defendants failed to disclose that: (i) CB-010’s treatment effect was not as durable as Defendants led investors to believe; and (ii) accordingly, CB-010’s clinical and commercial prospects were overstated. As a result, the Offering Documents and Defendants’ public statements throughout the Class Period were materially false and /or misleading and failed to state information required to be stated therein.
On June 10, 2022, Caribou issued a press release reporting “positive” data from the ANTLER Phase 1 clinical trial. Among other things, Caribou reported that “at 6 months following the single dose of CB-010, [only] 40% of patients remailed in complete response (2 of 5 patients) as of May 13, 2022, data cutoff date”. This prompted investor concern over the durability of the CB-010 treatment. On this news, Caribou’s stick price fell $1.78 per share, or 20.41%, to close at $6.94 per share on June 10, 2022,
Then on December 12, 2022, Caribou issued a press release that contained results that confirmed investors’ fears that the CB-010 treatment lacked significant durability. On this news, Caribous stock price fell $0.81 per share, or $9.03, to close at $8.16 per share on December 12, 2022.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492
Email: [email protected]
Web: www.edelson-law.com
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.