The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Gritstone bio, Inc. (GRTS) Investors

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Gritstone bio, Inc. (“Gritstone” or the “Company”) (NASDAQ: GRTS) securities between March 9, 2023 and February 29, 2024, inclusive (the “Class Period”). Gritstone investors have until August 6, 2024 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On February 12, 2024, Gritstone disclosed that it would be delaying the launch of its COVID-19 vaccine study (the “Phase 2b CORAL Study”) from the first quarter of 2024 to Fall 2024 to “allow use of fully GMP-grade raw materials in the vaccine, which is expected to increase the regulatory utility of the trial.”

Then, on February 29, 2024, Gritstone announced that it was reducing approximated 40% of its workforce, stating that “[t]he move comes following the recently announced delay of the proposed CORAL Phase 2b study, which resulted in Gritstone not receiving external funding it previously anticipated beginning in 1Q 2024, associated with the initiation of the study.”

On this news, Gritstone’s stock price fell $0.78, or 27.9%, to close at $2.02 per share on March 1, 2024, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company would be unable to launch the Phase 2b CORAL Study in the timeframe it had represented to investors; (2) the foregoing would impair Gritstone’s ability to obtain external funding in connection with the Study, thereby negatively affecting Gritstone’s ability to maintain its balance sheet and cash position; (3) accordingly, Gritstone overstated its ability to successfully develop and commercialize its products; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Gritstone securities during the Class Period, you may move the Court no later than August 6, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Gritstone securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to [e-mail], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

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