NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (https://www.rgrdlaw.com/cases-geron-corporation-class-action-lawsuit.html) today announced that it filed a class action seeking to represent purchasers of Geron Corporation (NASDAQ:GERN) securities during the period between March 19, 2018 and September 26, 2018 (the “Class Period”). This action was filed in the District of New Jersey and is captioned Pfeifer v. Geron Corp., et al., No. 20-cv-02424.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Geron securities during the Class Period to seek appointment as lead plaintiff in the Geron securities class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Geron securities class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Geron securities class action lawsuit. An investor’s ability to share in any potential future recovery of the Geron securities class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff in the Geron securities class action lawsuit, you must move the Court no later than 60 days from January 23, 2020. If you wish to discuss the Geron securities class action lawsuit or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at bcochran@rgrdlaw.com. You can view a copy of the complaint as filed at https://www.rgrdlaw.com/cases-geron-corporation-class-action-lawsuit.html.
The Geron securities class action lawsuit charges Geron and certain of its officers with violations of the Securities Exchange Act of 1934. Geron is a clinical-stage biopharmaceutical company focused on the development of a telomerase inhibitor, imetelstat, for the treatment of hematologic myeloid malignancies under a collaboration agreement with Janssen Biotech Inc. (“Janssen”). During the Class Period, Janssen was conducting a Phase 2 trial of imetelstat, known as the IMbark study, for the treatment of myelofibrosis, an uncommon type of bone marrow cancer that disrupts the normal production of blood cells, under the supervision of a Joint Steering Committee (“JSC”) consisting of both Geron and Janssen employees. The JSC conducted an internal non-public review of the IMbark study results in March 2018.
The complaint alleges that throughout the Class Period, defendants misled investors regarding imetelstat and the results from the IMbark study. Specifically, defendants concealed material information and/or failed to disclose that: (a) the March 2018 JSC internal study review and earlier end-point data, which had been gathered since at least April 2017, had demonstrated that the IMbark study failed to achieve its primary endpoints related to reductions in spleen volume and Total Symptom Score, or TSS; (b) the secondary outcome measures and survival rates defendants chose to selectively publicize did not overcome the failure of the IMbark study to achieve its primary endpoints; (c) as a result, there was a significantly increased risk and high likelihood that Janssen would decline to continue its collaboration with Geron on imetelstat development; and (d) as a result, defendants’ positive statements regarding imetelstat and the IMbark study during the Class Period were false and misleading and/or lacked a reasonable basis. As a result of this information being withheld from the market, Geron securities traded at artificially inflated prices during the Class Period, with the Company’s stock price reaching a high of more than $6 per share.
On March 27, 2018, Adam Feuerstein, a veteran biotech journalist, published an article questioning the results of the IMbark study and calling on defendants to disclose the study’s primary endpoint data in order to help investors evaluate defendants’ claims. On this news, the price of Geron stock declined 29% over two trading days.
Then on September 27, 2018, defendants reported the full results of the IMbark study. In order for the study to be considered successful, it required at least a 35% reduction in spleen volume in patients taking the drug. The actual result was 10%. Similarly, the study required patients taking the drug to show at least a 50% reduction in TSS. The actual reduction was 32%. As such, the IMbark study, by its own terms, was a failure. In addition, defendants announced that Janssen had decided to terminate its partnership with Geron. As a result of these disclosures, the price of Geron stock declined 63%, or $3.92 per share, to close at $2.31 per share on September 27, 2018.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
