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SANA.US
id: 1532
Sana Biotechnology ($SANA) Misleading Pipeline and Financial Guidance Case
W.D. Washington
Court2:25-cv-512
Case number03/17/2023
Class period Start11/04/2024
Class period End05/20/2025
Lead Plaintiff motion deadline- $SANA investors filed a lawsuit against Sana Biotechnology for overstating its financial strength and misleading investors about the viability of key drug candidates.
- After suspending the development of two lead programs and revealing a reduced cash runway on November 4, 2024, $SANA dropped 9.84%.
Case Details:
Throughout 2023 and most of 2024, Sana Biotechnology ($SANA) repeatedly assured investors that it had the funding and clinical data to support the continued development of its key pipeline programs, including SC291, SC379, and SG299. The company emphasized strong preclinical data, expected IND filings, and multiple readouts while stating that its cash runway would last into 2025.
On October 10, 2023, Sana took its first step back, announcing it would postpone the IND for SG299, cut spending on its fusogen platform, and reduce headcount by 29%—but still claimed it had the cash to fund clinical progress. Then on November 4, 2024, Sana formally suspended the development of SC291 in oncology and SC379, citing a shift in strategic priorities. The company said it would focus more on its type 1 diabetes and autoimmune programs and hoped to find partners for the discontinued candidates.
Investors learned for the first time that the pipeline programs they were told to expect data from in 2024 had been quietly deprioritized. The same day, Sana also acknowledged that its 2024 cash burn might exceed prior guidance, despite previous reassurances that its balance sheet was solid.
Following the announcement, $SANA dropped 9.84%.
Based on these events, $SANA investors filed a lawsuit against Sana Biotechnology, claiming the company:
- It overstated the viability of its drug pipeline and the timeline for key clinical milestones.
- It misled investors about its financial flexibility while planning internal program cuts.
- It withheld critical information about suspended programs until months after the strategic shift had already begun.
Investors believe Sana misrepresented its financial health and development plans.
Case Status
Lead Plaintiff Appointment
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
11/04/2024
Filing date
03/21/2025
Lead Plaintiff Deadline
05/20/2025