CABA Stock Investigation: Robbins LLP Investigates Cabaletta Bio, Inc. (CABA) on Behalf of Shareholders

SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP is investigating Cabaletta Bio, Inc. (NASDAQ: CABA) and its officers and directors to determine if they breached their fiduciary duties and violated securities laws in connection with the Company's initial public offering ("IPO"). Cabaletta Bio is a clinical-stage biotechnology company that discovers and develops engineered T cell therapies for patients with B cell-mediated autoimmune diseases. The Company's lead product candidate is DSG3-CAART, which is in Phase I clinical trial.

If you would like more information about our investigation of Cabaletta Bio, Inc.'s misconduct, click here.

What is this Case About: According to a class action complaint filed against Cabaletta, statements made in support of the IPO were negligently prepared and defendants made misleading statements during the class period. Specifically, the offering documents and defendants' subsequent statements failed to disclose that top-line data of the Phase 1 Clinical Trial indicated that DSG3-CAART had, among other things, worsened certain participants' disease activity scores and necessitated additional systemic medication to improve disease activity after DSG3-CAART infusion. Because DSG3-CAART was not as effective as represented to investors, the Company had overstated DSG3-CAART's clinical and/or commercial prospects.

On December 24, 2021, Cabaletta reported "top-line data on biologic activity from the two lowest dose cohorts in the DesCAARTes™ Phase 1 clinical trial of DSG3-CAART for the treatment of patients with mucosal Pemphigus Vulgaris (mPV)." Among other results, Cabaletta reported that two cohort participants had "disease activity scores that worsened … after DSG3-CAART infusion" and thus "reduced or discontinued selected systemic therapies prior to DSG3-CAART infusion, as required by the protocol," while another participant "subsequently received systematic medication to improve disease activity after DSG3-CAART infusion." On this news, Cabaletta's stock fell $9.15 per share, or over 73% to close at $3.36 per share on December 14, 2021. The stock continues to trade well below the $11.00 IPO price.

Next Steps: If you acquired shares of Cabaletta Bio, Inc. (CABA) pursuant to its IPO or between October 24, 2019 and December 13, 2021, you have legal options. Contact us for more information.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:

Aaron Dumas
[phone]
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Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Cabaletta Bio, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

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