Securities Class Action: Caribou Biosciences, Inc.
PHILADELPHIA, PA / February 14, 2023 / Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Caribou Biosciences, Inc. (“Caribou”) (NASDAQ: CRBU) on behalf of those who purchased or acquired: Caribou common stock pursuant and/or traceable to Caribou’s initial public offering conducted on or about July 23, 2021 (the “IPO” or “Offering”); and/or (b) Caribou securities between July 23, 2021 and December 9, 2022, both dates inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired Caribou securities during the Class Period may, no later than April 11, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (215) 875-3093, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://investigations.bergermontague.com/caribou-biosciences-inc/
Caribou is a clinical-stage biopharmaceutical company that engages in the development of genome-edited allogeneic cell therapies for the treatment of hematologic malignancies and solid tumors in the U.S. and internationally. 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.
On July 23, 2021, pursuant to the Registration Statement, Caribou’s common stock began publicly trading. That same day, Caribou filed a prospectus on a Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the “Prospectus” and, collectively with the Registration Statement, the “Offering Documents”). Pursuant to the Offering Documents, Caribou issued 19 million shares of common stock to the public at the Offering price of $16.00 per share for proceeds of $282.72 million to Caribou, before expenses, and after applicable underwriting discounts.
On June 10, 2022, Caribou issued a press release reporting “[p]ositive” data from the ANTLER Phase 1 clinical trial. Among other results, Caribou reported that “[a]t 6 months following the single dose of CB-010, [only] 40% of patients remained in CR [complete response] (2 of 5 patients) as of the May 13, 2022 data cutoff date”, prompting investor concern over the durability of the CB-010 treatment. Following this news, Caribou’s stock 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 “report[ing] new 12-month clinical data from cohort 1 in the ongoing ANTLER Phase 1 trial, which [purportedly] show[ed] longterm durability following a single infusion of CB-010 at the initial dose level 1 (40×106 CAR-T cells).” Among other results, Caribou reported that “3 of 6 patients maintained a durable CR at 6 months” and “2 of 6 patients maintain a long-term CR at the 12 month scan and remain on the trial”, thereby confirming investor fears that the CB-010 treatment lacked significant durability. Following this news, Caribou’s stock price fell $0.81 per share, or 9.03%, to close at $8.16 per share on December 12, 2022.
The complaint alleges that the Offering Documents and the defendants made false and/or misleading statements and/or failed to disclose that: (i) CB-010’s treatment effect was not as durable as the defendants had led investors to believe; (ii) accordingly, CB-010’s clinical and commercial prospects were overstated; and (iii) as a result, the Offering Documents and the defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., San Francisco, and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.