NOTICE: Cabaletta Bio, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit – CABA
SAN DIEGO, CA (ClassActionDaily) The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers of Cabaletta Bio, Inc. (NASDAQ: CABA): (a) common stock pursuant and/or traceable to the offering documents issued in connection with Cabaletta Bio’s initial public offering conducted on or about October 24, 2019 (the “IPO”); and/or (b) securities between October 24, 2019, and December 13, 2021, both dates inclusive (the “Class Period”) have until April 29, 2022, to seek appointment as lead plaintiff in Patterson v. Cabaletta Bio, Inc., No. 22-cv-00737. Commenced on February 28, 2022, in the Eastern District of Pennsylvania, the Cabaletta Bio class-action lawsuit charges Cabaletta Bio as well as certain of its top executives and directors with violations of the Securities Act of 1933 and/or Securities Exchange Act of 1934.
CASE ALLEGATIONS: Cabaletta Bio’s lead product candidate is DSG3-CAART, which is in Phase I clinical trial for the treatment of mucosal pemphigus vulgaris (the “Phase 1 Clinical Trial”), an autoimmune blistering skin disease, and Hemophilia A with Factor VIII alloantibodies. Pursuant to its IPO, Cabaletta Bio sold approximately 6.8 million shares of common stock priced at $11.00 per share, for approximate proceeds of $69.5 million to Cabaletta Bio after applicable underwriting discounts and commissions, and before expenses.
The Cabaletta Bio class-action lawsuit alleges that the IPO’s offering documents and defendants made false and/or misleading statements and/or failed to disclose that: (i) top-line data of the Phase 1 Clinical Trial indicated that DSG3-CAART had, among other things, worsened certain participants’ disease activity scores and necessitated additional systemic medication to improve disease activity after DSG3-CAART infusion; (ii) accordingly, DSG3-CAART was not as effective as Cabaletta Bio had represented to investors; (iii) therefore, Cabaletta Bio had overstated DSG3-CAART’s clinical and/or commercial prospects; and (iv) as a result, Cabaletta Bio’s public statements were materially false and misleading at all relevant times.
On December 14, 2021, Cabaletta Bio issued a press release “report[ing] top-line data on biologic activity from the two lowest dose cohorts in the DesCAARTes™ Phase 1 clinical trial of DSG3-CAART for the treatment of patients with mucosal Pemphigus Vulgaris (mPV).” Among other results, Cabaletta Bio reported that two cohort participants had “disease activity scores . . . that worsened . . . after DSG3-CAART infusion” and thus “reduced or discontinued selected systemic therapies prior to DSG3-CAART infusion, as required by the protocol,” while another participant “subsequently received systemic medication to improve disease activity after DSG3-CAART infusion.” On this news, Cabaletta Bio’s stock price fell by more than 73%, damaging investors.
As of the time the Cabaletta Bio class action lawsuit was filed, the price of Cabaletta Bio common stock continues to trade below the $11.00 per share IPO price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Cabaletta Bio: (a) common stock pursuant and/or traceable to the offering documents issued in connection with the IPO; and/or (b) securities during the Class Period to seek appointment as lead plaintiff in the Cabaletta Bio class-action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
If you suffered significant losses and wish to serve as lead plaintiff of the Cabaletta Bio class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Cabaletta Bio class-action lawsuit must be filed with the court no later than April 29, 2022.
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
J.C. Sanchez, 800-449-4900