In a dramatic turn of events, Capricor Therapeutics, Inc. finds itself at the center of a class action lawsuit, accused of misleading investors about its promising cell therapy candidate, deramiocel. The lawsuit aims to recover losses for shareholders who invested in Capricor between October 9, 2024, and July 10, 2025, based on allegedly fraudulent information.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
The controversy stems from Capricor’s optimistic claims regarding the potential approval of deramiocel for treating cardiomyopathy in Duchenne muscular dystrophy patients. Investors were led to believe that the company was on track to secure a Biologics License Application from the FDA. However, it has come to light that Capricor may have concealed critical safety and efficacy data from its Phase 2 HOPE-2 trial, painting a misleading picture of the drug’s prospects.
The bubble burst on July 11, 2025, when Capricor announced it had received a Complete Response Letter from the FDA, denying the application due to insufficient evidence of effectiveness and unresolved issues in the Chemistry, Manufacturing, and Controls section. This revelation sent Capricor’s stock price plummeting from $11.40 to $7.64 per share overnight.
For those who have suffered financial losses during this period, there is a path to recovery. Shareholders are encouraged to visit the link provided to understand their rights and explore the possibility of compensation. Participation in the lawsuit comes at no cost or obligation.
Levi & Korsinsky LLP, a firm with a formidable reputation in securities litigation, is spearheading this legal battle. With over two decades of experience and a proven track record of securing substantial settlements for investors, they stand ready to advocate for affected shareholders.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171