Capricor Therapeutics ($CAPR) Regulatory Misrepresentations and Stock Collapse Case

The court has appointed the lead plaintiff to represent the class.

S.D. California

Court

3:25-cv-01815

Case number

10/09/2024

Class period Start

07/10/2025

Class period End

09/15/2025

Lead Plaintiff motion deadline

$CAPR investors filed a claim against Capricor Therapeutics for misleading the market about its lead therapy deramiocel’s regulatory prospects, overstating efficacy signals, and concealing critical issues with its FDA approval pathway.
After the company canceled its advisory committee meeting, received a Complete Response Letter from the FDA, and disclosed the failure to secure accelerated approval, $CAPR dropped 62.7% across multiple disclosures, including 26.4% on June 27, 2025, and 36.3% on July 11, 2025.
$CAPR investors can join this case to be notified about potential recovery.
Case Details:

Between October 9, 2024, and July 10, 2025, Capricor promoted deramiocel (CAP-1002) as a strong candidate for accelerated FDA approval to treat Duchenne muscular dystrophy-related cardiomyopathy. Executives claimed the drug’s Phase 2 HOPE-2 trial supported regulatory success and repeatedly suggested that accelerated approval was likely.

In truth, the company lacked sufficient data to meet FDA standards. On June 26, 2025, Capricor revealed that the FDA canceled its advisory committee meeting and raised significant concerns. $CAPR dropped 26.4%. Then on July 11, 2025, Capricor disclosed that the FDA issued a Complete Response Letter, refusing to approve deramiocel due to lack of substantial evidence. The stock fell another 36.3%.

Based on these events, $CAPR investors filed a claim against Capricor, alleging the company:
It misled investors about the likelihood of accelerated FDA approval.
It concealed material feedback from the FDA casting doubt on efficacy data.
It withheld regulatory setbacks until after stock-boosting public statements.
Investors believe Capricor misrepresented deramiocel’s approval prospects to inflate its valuation and delay the fallout from critical regulatory risks.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Appointed

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

07/11/2025

Filing date

07/17/2025

Lead Plaintiff Deadline

09/15/2025

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