Brainstorm Cell Therapeutics Inc. (BCLI) Misled Investors About the Viability and Efficacy of its drug NurOwn
A shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired Brainstorm Cell Therapeutics Inc. (NASDAQ: BCLI) securities between August 15, 2022 and September 27, 2023. Brainstorm Cell is a biotechnology company that develops and commercializes autologous cellular therapies for the treatment of neurodegenerative diseases.
According to the complaint, on August 15, 2022, the Company issued a press release announcing its submission of a Biologics License Application (“BLA”) to the U.S. Food and Drug Administration (“FDA”) for NurOwn for the treatment of amyotrophic lateral sclerosis (“ALS”). On November 10, 2022 the Company announced it had received a refusal to file letter from the FDA for its BLA for NurOwn for the treatment of ALS. On this news, Brainstorm Cell’s share price fell 42.21%.
Then, on September 27, 2023, the Company announced the results of the FDA’s review of its BLA. Members of the Cellular, Tissue, and Gene Therapies Advisory Committee voted 17 to 1 that there was not substantial evidence to show NurOwn’s effectiveness. On this news, Brainstorm Cell’s share price fell $0.19 per share, or 48.72%, to close at $0.2 per share on September 28, 2023.
The complaint alleges that during the class period, defendants failed to disclose that Brainstorm Cell downplayed the severity of the FDA’s refusal to file letter and continued to conceal the risks associated with the submission of the BLA.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Brainstorm Cell Therapeutics Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by January 2, 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.
