GRABAR LAW OFFICE INVESTIGATES CLAIMS ON BEHALF OF SHAREHOLDERS OF FATE THERAPEUTICS, INC. (NASDAQ: FATE)
Grabar Law Office is investigating potential claims on behalf of Fate Therapeutics, Inc. (NASDAQ: FATE) shareholders. The investigation concerns whether certain officers of Fate Therapeutics have breached their fiduciary duties owed to the company.
According to the underlying class action complaint, Fate Therapeutics is a clinical-stage biopharmaceutical company that develops programmed cellular immunotherapies to treat cancer and immune disorders.
On April 2, 2020, Fate Therapeutics announced its entry into a global collaboration and option agreement with Janssen Biotech, Inc., one of the Janssen Pharmaceutical Companies of Johnson & Johnson, for cell-based cancer immunotherapies, under which Fate Therapeutics received a $50 million upfront payment. In addition, Fate Therapeutics was eligible for up to $3 billion in various milestone payments and double-digit royalties on any net sales from the collaboration. On the news, Fate Therapeutics’ stock price jumped 8.8% in trading on April 3, 2020.
The underlying securities fraud class action complaint alleges that, throughout the Class Period (April 2, 2020 through January 5, 2023), Fate Therapeutics, through certain of its officers and directors, made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, the class action complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Janssen Collaboration Agreement was less sustainable than Fate Therapeutics had represented to investors; (ii) accordingly, certain of the clinical programs, milestone payments, and royalty payments associated with the Janssen Collaboration Agreement could not be relied upon as future revenue sources; (iii) as a result, Fate Therapeutics had overstated the impact of the Janssen Collaboration Agreement’s on Fate Therapeutics’ long-term clinical and commercial profitability; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Current Fate Therapeutics shareholders who have held Fate Therapeutics stock since on or before April 2, 2020, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.
If you would like to learn more about this matter, you are encouraged to contact us at email@example.com, or call Joshua Grabar at 267-507-6085.