Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, is investigating Geron Corporation (NASDAQ: GERN) (“Geron” or “the Company”) for securities fraud following allegations that the company distributed false and misleading statements to investors concerning its business and prospects, and advises investors of the class-action lead plaintiff deadline on May 13, 2014. Investors who have suffered significant financial losses, and who want to discuss their options, can contact a Hagens Berman attorney by emailing Geron@hbsslaw.com.
The securities fraud class-action lawsuit, filed on March 14, 2014, on behalf of investors who purchased Geron stock between June 16, 2013 and March 11, 2014 (the “Class Period”), alleges that the company failed to disclose key information to its investors regarding halting of its sponsored clinical trials by the FDA. For more information about the suit, please contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000. Additional information is available at http://hb-securities.com/investigations/Geron.
The complaint alleges that Geron, a clinical stage biopharmaceutical company, misrepresented or failed to disclose that persistent low-grade liver function test (LFT) abnormalities had been observed in the study of imetelstat – the company’s sole product candidate. According to the complaint, the company received notice from the FDA on March 12, 2014, that its work with imetelstat had been placed on full clinical hold, greatly affecting Geron’s sponsored clinical trials; Geron failed to disclose this information to investors. This hold was due to the potential risk of chronic liver injury following long-term exposure to imetelstat. Following this news, Geron shares declined $2.71 per share, more than 61 percent, to close at $1.69 per share on March 12, 2014.
“We believe that Geron did not adequately disclose the existence of persistent low-grade liver function tests and the concerns this raised about their prospects,” said Mr. Kathrein. “While Geron may have hoped that the FDA would not take action, the company has admitted that it was sufficiently concerned about the occurrence of these abnormalities that the company discussed the issue with its expert panel.”