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GRTS.US
id: 1982

Gritstone bio ($GRTS) Investor Settlement

The parties have reached an agreement to settle the case, but the terms are still being finalized. You can submit your application now, and it will be processed once claims filing opens.
N.D. California
Court
3:24-cv-03640
Case number
03/09/2023
Class period Start
02/29/2024
Class period End
Gritstone bio has reached a tentative settlement to resolve investor claims that it misled the market about the timing of its CORAL Phase 2b study, related BARDA funding, and the company’s financial outlook.

Outline:

On September 27, 2023, Gritstone said BARDA had awarded a contract supporting a 10,000-participant Phase 2b study for its next-generation COVID-19 vaccine. The company said the study would be fully funded and was expected to begin in the first quarter of 2024. On February 12, 2024, Gritstone delayed the study to Fall 2024. On February 29, 2024, it announced a 40% workforce reduction after saying the delay prevented expected outside funding, and the case has now moved to a tentative settlement.

Timeline:
  • March 9, 2023: Gritstone said it was advancing its vaccine platforms, including its samRNA approach in infectious disease.
  • September 27, 2023: Gritstone announced a BARDA contract valued at up to $433 million for a 10,000-participant Phase 2b study of its COVID-19 vaccine candidate.
  • October 11, 2023: Gritstone said preparations for the BARDA-funded study were underway and again said it expected to start the trial in the first quarter of 2024.
  • November 8, 2023: Gritstone repeated that it was preparing the Phase 2b study and expected initiation in the first quarter of 2024.
  • February 12, 2024: Gritstone said it was delaying the Phase 2b study to Fall 2024.
  • February 29, 2024: Gritstone announced an approximately 40% workforce reduction and said the study delay meant it did not receive the outside funding it had expected in early 2024.
  • March 1, 2024: $GRTS fell 27.86% to close at $2.02 after the workforce-reduction announcement.
Background:

Gritstone is a clinical-stage biotechnology company developing vaccine-based immunotherapy candidates for cancer and infectious diseases. A major part of its infectious-disease effort was CORAL, a next-generation COVID-19 vaccine program built around the company’s self-amplifying mRNA platform.

In September 2023, Gritstone said BARDA had awarded a contract to support a large Phase 2b study comparing its vaccine candidate with an approved COVID-19 vaccine. The company described that award as strong validation of its platform and said the study would be fully funded and expected to launch in the first quarter of 2024.

Investors say that timeline was not as secure as the company presented. The dispute centers on claims that Gritstone would not be able to launch the study when promised, and that this would affect expected external funding tied to the study.

That issue came into clearer view in February 2024. First, Gritstone delayed the study to Fall 2024. Then, just weeks later, it announced a roughly 40% workforce reduction and said the study delay meant it had not received the outside funding it had expected in early 2024.

Investors say those events revealed the real pressure the CORAL delay placed on Gritstone’s balance sheet and cash position. The matter has now moved to a tentative settlement.

What Can Investors Expect Now?

Gritstone bio has reached a tentative settlement to resolve investor claims that it misled the market about the timing of its CORAL Phase 2b study, related BARDA funding, and the company’s financial outlook.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Case Type
US Securities Class Action
Case Status
Tentative Settlement
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Fraud, 
Failure to Disclose
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Filing date
06/17/2024
Plaintiffs
Tammy Beal
Attorneys
Pomerantz LLP
Defendants
Andrew R. Allen
Trades matching type
FIFO

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