NEW YORK–(COMMERCIAL THREAD)–Bragar Eagel & Squire, PC, a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Fate Therapeutics, Inc. (“Fate” or the “Company”) ( NASDAQ: FATE) in the United States District Court for the Southern District of California on behalf of all persons and entities who purchased or otherwise acquired Fate securities between April 2, 2020 and January 5, 2023, both dates inclusive (the “Class Period”). Investors have until March 22, 2023 to apply to the Court to be named as the lead plaintiff in the lawsuit.
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Fate is a clinical-stage biopharmaceutical company developing programmed cell immunotherapies for the treatment of cancer and immune disorders.
On April 2, 2020, following the market close, Fate announced it has entered into a global collaboration and option agreement with Janssen Biotech, Inc. (“Janssen”), one of the Janssen Pharmaceutical Companies of Johnson & Johnson, for the cell-based cancer immunotherapies, pursuant to which Fate received a $50 million upfront payment (the “Janssen Collaboration Agreement”). Additionally, Fate was entitled to up to $3 billion in various milestone payments and double-digit royalties on any net sales resulting from the collaboration. Upon the news, Fate’s share price jumped 8.8% in trading on April 3, 2020.
Throughout the lecture period, the defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, the Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Janssen Partnership Agreement was less tenable than fate had held for investors; (ii) as a result, certain clinical programs, interim payments and royalty payments associated with the Janssen Collaboration Agreement could not be considered as future sources of income; (iii) as a result, Fate had overestimated the impact of the Janssen Collaboration Agreement on Fate’s long-term commercial and clinical viability; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On January 5, 2023, after the markets closed, Fate issued a press release announcing that it had terminated the Janssen partnership agreement. Specifically, the Company disclosed that it was “unable to align with Janssen on their proposal for the continuation of our collaboration, in which two product candidates targeting high-value, clinically validated hematological antigens were to enter clinical development in 2023.”[.]Following the termination, Fate disclosed that all licenses and other rights granted under the Janssen Partnership Agreement would cease, that it would reduce its headcount to approximately 220 employees in Q1 2023, and that it would discontinue many of the its natural cell killer programs in various cancer types, including FT516 and FT538 NK cell programs in acute myeloid leukemia, FT516 and FT596 NK cell programs in B-cell lymphoma, and FT538 and FT536 NK cell programs in solid tumors.
Upon this news, Fate’s stock price fell $6.76 per share, or 61.45%, to close at $4.24 per share on January 6, 2023.
As a result of the Defendants’ torts and omissions and the precipitous decline in the market value of the Company’s securities, the Plaintiff and other members of the Class have suffered significant losses and damages.
If you have bought or otherwise acquired Fate stock and have suffered a loss, are a long-term shareholder, have information, want to know more about these statements, or have any questions relating to this announcement or your rights or interests in connection therewith questions, please contact Brandon Walker or Melissa Fortunato by email at Investigations@bespc.com, by phone at (212) 355-4648, or by by filling out this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts throughout the country. For more information about the company, please visit www.bespc.com. Advocate advertising. Previous results do not guarantee similar results.