Full Press Release Details
SAN FRANCISCO, March 21, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges Fate Therapeutics, Inc. (NASDAQ: FATE) investors who suffered significant losses to submit your losses now.
Class Period: Apr. 2, 2020 – Jan. 5, 2023
Lead Plaintiff Deadline: Mar. 22, 2023
Contact An Attorney Now: FATE@hbsslaw.com
Fate Therapeutics, Inc. (FATE) Securities Fraud Class Action:
The litigation focuses on Fate’s widely touted April 2020 collaboration agreement with Janssen Biotech, pursuant to which Janssen and Fate agreed to collaborate to develop iPSC-derived CAR-NK and CAR T-cell product candidates for the treatment of cancer. Under this agreement, Fate received a $50 million up front payment and was eligible to receive up to $3 billion in various milestone payments and royalties.
According to the complaint, Defendants made materially misleading statements and failed to disclose that: (1) the Janssen agreement was less sustainable than Fate represented to investors; (2) accordingly, certain clinical programs, milestone payments, and royalty payments associated with the agreement could not be relied upon as future revenue sources; and (3) as a result, Fate overstated the impact of the Janssen agreement on Fate’s long-term clinical and commercial profitability.
The truth emerged on Jan. 5, 2023, when Fate announced that it terminated the Janssen collaboration agreement after Fate declined Janssen’s proposal to continue the agreement on revised terms. The company also said that all collaboration activities with Janssen will be wound down during Q1 2023 and that it is slashing its workforce from 545 (as of Sept. 30, 2022) to about 220 in Q1 2023.
This news resulted in a wave of analyst downgrades and drove the price of Fate Therapeutics shares down over 60% in a single day.
“We’re focused on investors’ losses and proving Fate misled investors about the strength of- and prospects for- its work with Janssen,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Fate Therapeutics and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Fate Therapeutics should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FATE@hbsslaw.com.
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
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FATE securities class action
FATE securities fraud