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RAIN.US

id: 778

Rain Oncology ($RAIN) $7.25M Investor Settlement

Eligible claimants can submit their claims for compensation.

$7,250,000

Cash Settlement

N.D. California

Court

5:23-cv-3518

Case number

04/23/2021

Class period Start

05/19/2023

Class period End

04/20/2026

Claim deadline

Rain Oncology has reached a $7.25M settlement with $RAIN investors over claims that it misled them about its lead drug candidate, milademetan, and overstated the strength and progress of its clinical trial program.

Outline:

Rain promoted milademetan as a promising therapy for liposarcoma and other cancers. Investors later alleged the company overstated the strength of its clinical program and failed to disclose problems with the Phase 3 trial. In May 2023, Rain revealed the drug failed its primary endpoint and halted development. The stock collapsed and investors filed suit, leading to a tentative settlement.

Timeline:
July 2021: Rain Oncology completed its IPO, raising $94.4 million.
2022: The company advanced the Phase 3 FOCUS trial for milademetan and made positive statements about its progress.
May 22, 2023: Rain announced milademetan failed to meet the primary endpoint in the Phase 3 trial.
May 22, 2023: $RAIN dropped about 87%, erasing nearly $100 million in market value.
July 2023: Investors filed a securities class action lawsuit.
December 2025: Rain reached a $7.25 million settlement.
Background:

Rain Oncology is a clinical-stage biotechnology company focused on developing targeted cancer therapies. Its lead drug candidate, milademetan, was designed to target cancers involving the MDM2-p53 pathway, including certain forms of liposarcoma and other solid tumors.

During 2022 and early 2023, Rain highlighted milademetan as a promising therapy and pointed to preclinical data and progress in its Phase 3 FOCUS clinical trial. The company presented the study as a key step toward potential regulatory approval and future commercialization.

Investors later alleged that Rain failed to disclose weaknesses in the trial’s design and statistical power, as well as risks affecting the likelihood of success. According to the claims, these omissions created an overly optimistic picture of the drug’s prospects.

On May 22, 2023, Rain announced that milademetan failed to meet its primary endpoint in the Phase 3 FOCUS trial and that development of the drug would be discontinued. The announcement triggered a sharp market reaction, with $RAIN falling about 87% in a single day.

What Can Investors Expect Now?

Rain Oncology has reached a $7.25 million settlement with $RAIN investors to resolve claims tied to statements about the development prospects and clinical progress of milademetan.

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

Accepting Claims

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.91

Filing date

07/14/2023

Lead Plaintiff Deadline

09/12/2023

Plaintiffs

Myo Thant

Attorneys

Levi & Korsinsky, Robbins Geller Rudman & Dowd

Administrator

Strategic Claims Services

Court hearing date

04/02/2026

Exclusion deadline

03/05/2026

Objection deadline

03/05/2026

Attorney fee

$1,887,500

Trades matching type

FIFO

Frequently Asked Questions

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