NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Geron Corporation (“Geron” or the “Company”) (NASDAQ:GERN) of the March 23, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Geron stock or options between March 19, 2018 and September 26, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/GERN. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Geron common stock between March 19, 2018 and September 26, 2018 (the “Class Period”). The case, Tollen v. Geron Corporation et al., No. 3:20-cv-00547 was filed on January 23, 2020 and has been assigned to Judge William Alsup.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the spleen response rate, which measured the reduction in spleen swelling, and (2) a composite of various symptoms called the Total Symptom Score (TSS). In order for IMbark to succeed, patients in the study needed to show at least a 35% reduction in spleen volume and a minimum 50% reduction in TSS.
On the morning of March 27, 2018, Adam Feuerstein, a veteran biotech journalist, published an article on STAT News, an online life sciences publication, entitled “The top-performing biotech stock this year has surged on flimsy data.” In the article, Feuerstein called out Geron and Scarlett for intentionally misleading the market with their statements on March 16 and March 19, 2018.
On this news, the Company's stock price fell from $5.98 per share on March 26, 2018 to $5.15 per share on March 27, 2018: a $0.83 or 13.88% drop.
Then, on September 27, 2018, the Company finally admitted that IMbark was a failure. The IMbark study showed only a 10% decrease in spleen volume, when 35% or more was required for success, and a 32% reduction in Total Symptom Score, when at least 50% was needed. The same day the full results were finally disclosed, Adam Feuerstein published another article on STAT News concerning Geron. The article stated in relevant part: “Back in March, Geron CEO John Scarlett ignited a steep run higher in the stock price with a suggestion, uttered on a conference call, that imetelstat was prolonging survival in patients with the bone marrow disorder myelofibrosis.” Feuerstein noted in the article that “Geron raised $84 million through highly dilutive stock sales in the second quarter,” ultimately concluding, “[t]aking advantage of the hyped-up stock price earlier this year was a fiscally smart move, although that’s small consolation to shareholders left holding the bag.”
On this news, the Company's stock price fell from $2.31 per share on September 27, 2018 to $1.76 per share on September 28, 2018: a $0.45 or 23.81% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Geron’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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