ALVR.US
id: 1069
AlloVir ($ALVR) Investor Settlement
The parties have reached an agreement to settle the case, but the terms are still being finalized.
D. Massachusetts
Court1:24-cv-10152
Case number01/11/2023
Class period Start12/21/2023
Class period EndAlloVir ($ALVR) has reached a settlement with investors over claims that it misled them about the effectiveness of its lead product, Posoleucel.
Outline
In early 2023, Allovir was accused by independent monitors of hiding that AlloVir’s Phase 3 trials for posoleucel were unlikely to succeed. When the company terminated all three trials and revealed the negative results in December 2023, $ALVR fell over 67%. By March 2024, Allovir faced a lawsuit from investors.
Timeline
- January 10, 2023 – Independent monitors allegedly determined that AlloVir’s Phase 3 trial for posoleucel was unlikely to succeed, but the company continued the trials without disclosure.
- December 22, 2023 – AlloVir terminated all three Phase 3 trials, revealing the negative trial results. $ALVR fell over 67% on the news.
- March 2024 – Investors filed a lawsuit, alleging AlloVir hid key trial failures and misled them about posoleucel’s approval chances.
- February 2025 – AlloVir agreed to settle to resolve investor claims.
Background
AlloVir is a biotech company that focused on developing posoleucel, a treatment for transplant patients vulnerable to viral infections. After promising Phase 2 results, AlloVir moved forward with three Phase 3 trials in 2022–2023.
However, internal monitoring reviews determined early on that the trials were unlikely to succeed. Despite these warnings, AlloVir continued to promote the trials and sold millions of dollars in stock.
When the company finally announced the trial failures in December 2023, $ALVR collapsed by 67% in a single day.
By March 2024, investors sued, alleging that AlloVir misled them about the drug’s commercial prospects.
What Can Investors Expect Now?
AlloVir has reached a settlement with $ALVR investors over claims that it misled them about the effectiveness of its lead product.
If you were affected by this situation, you may be eligible to file for a payout and receive your share of the settlement. Check the FAQ section below for details on eligibility and claims.
Case Status
Tentative Settlement
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Filing date
01/19/2024
Lead Plaintiff Deadline
03/19/2024
Plaintiffs
Harry Levin; Julio Maurice Bueno
Attorneys
Pomerantz LLP
Defendants
Diana M. Brainard, Vikas Sinha
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
What is 11th Estate?