AlloVir, Inc. (ALVR) Allegedly Misled Investors Regarding Efficacy of its Posoleucel Phase 3 Studies
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired AlloVir, Inc. (NASDAQ: ALVR) securities between March 11, 2022 and December 21, 2023. AlloVir, a clinical-stage cell therapy company, engages in the research and development of allogeneic, off-the-shelf multi-virus specific T cell (“VST”) therapies to prevent and treat devastating viral-associated diseases.
According to the complaint, In March 2022, AlloVir initiated global phase 3 registrational studies of its lead product posoleucel for the prevention of life-threatening viral infections from viruses in high-risk, allogeneic hematopoietic cell transplant patients (the “posoleucel Phase 3 Studies”).
Plaintiff alleges that during the class period, defendants failed to disclose that: (i) the posoleucel Phase 3 Studies were unlikely to meet their primary endpoints; (ii) as a result, it was likely that the Company would ultimately discontinue the posoleucel Phase 3 studies; and (iii) accordingly, AlloVir overstated the efficacy and clinical and/or commercial prospects of posoleucel.
On December 22, 2023, AlloVir announced that it was discontinuing the posoleucel Phase 3 studies over efficacy concerns and stated that it would explore strategic alternatives for the Company. Specifically, AlloVir said it was discontinuing the posoleucel Phase 3 studies after pre-planned analyses concluded they wouldn’t meet their primary endpoints. On this news, AlloVir’s stock price fell $1.57 per share, or 67.38%, to close at $0.76 per share on December 22, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against AlloVir, Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by March 19, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
