Robbins LLP is Investigating Allegations that Bolt Therapeutics, Inc. (BOLT) Misled Investors Regarding the Viability of its New Drug Candidate
Robbins LLP informs investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Bolt Biotherapeutics, Inc. (NASDAQ: BOLT) securities between February 5, 2021 and May 14, 2024. Bolt, a clinical-stage biopharmaceutical company, engages in the development of immunotherapies for the treatment of cancer.
The Allegations
Plaintiff alleges that during the class period defendants failed to disclose to investors that: (i) BDC-1001 was less effective than the Company had represented to investors and was in fact unlikely to meet its pre-defined success criteria; (ii) accordingly, defendants overstated the clinical and/or commercial prospects of Bolt’s product pipeline, on which the Company primarily relies to sustain its business model; and (iii) all of the foregoing subjected the Company to a heightened risk of disruptive leadership transitions and substantial workforce reduction.
The complaint alleges that on May 14, 2024, Bolt issued a press release announcing that the Company would cease further development of BDC-1001 and focus resources on BDC-3042 and BDC-4182 upon determining that BDC-1001 failed to meet its pre-defined success criteria, that the Company’s Chief Executive Officer Randall C. Schatzman and Chief Medical Officer Edith Perez would be moved into advisory roles, and that Bolt would be reducing its workforce by approximately 50%. In addition, following Bolt’s announcement, multiple analysts downgraded the Company’s stock, citing BDC-3042 and BDC-4182’s questionable near-term commercial prospects and the departure of the Company’s CEO and CMO as reasons for the downgrade. On this news, Bolt’s stock price fell $.49 per share, or 37.12%, to close at $0.83 per share on May 15, 2024.
What Now: You may be eligible to participate in the class action against Bolt Biotherapeutics, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by September 3, 2024. A lead plaintiff is a representative party who acts 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.