Bronstein, Gewirtz & Grossman LLC Reminds Gritstone bio, Inc. Investors to Join Class Action Lawsuit!

NEW YORK, NEW YORK / ACCESSWIRE / July 1, 2024 / Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors of the filing of a class action lawsuit against Gritstone bio, Inc. (“Gritstone” or the “Company”) (NASDAQ:GRTS) and certain of its officers.

Class definition:

This lawsuit seeks to recover damages from defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Gritstone securities between March 9, 2023 and February 29, 2024, inclusive ( “Collective period”). Such investors are encouraged to join this cause by visiting the company’s website: bgandg.com/GRTS.

Case details:

According to the Complaint, Gritstone is a clinical-stage biotechnology company that is developing vaccine-based immunotherapy candidates for cancer and infectious diseases.

According to the complaint, in September 2023, Gritstone entered into an agreement with the Biomedical Advanced Research and Development Authority (“BARDA”) to conduct a 10,000-participant, randomized, double-blind Phase 2b study to compare the efficacy, safety and immunogenicity of its drug candidate COVID-19 vaccine (samRNA vaccine candidate) with an approved COVID-19 vaccine (the “Phase 2b CORAL Study” or the “Study”). In a press release announcing the Phase 2b CORAL study, the Company stated that the contract “provides strong validation of (its) innovative infectious disease vaccine platform”, that execution of the study will be fully funded by BARDA, and that the study is expected to launch in the first quarter of 2024 .

The complaint alleges that throughout the contract period, Gritstone made false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Gritstone made false and/or misleading statements and/or failed to disclose that:

(1) the Company will not be able to commence the CORAL Phase 2b study on the date it has communicated to investors;

(2) the foregoing would hamper Gritstone’s ability to obtain external financing in connection with the study, which would adversely affect Gritstone’s ability to maintain its balance sheet and cash position;

(3) therefore, Gritstone overestimated its ability to successfully develop and commercialize its products; AND

(4) as a result, the Company’s public statements were at all material times materially false and misleading.

The truth began to emerge, according to the Complaint, on February 12, 2024, when Gritstone issued a press release announcing that the company was delaying the start of the study until fall 2024 to supposedly “enable the use of fully GMP-compliant raw materials in the vaccine, which is expected to enhance the study’s regulatory utility.” Then, on February 29, 2024, Gritstone issued a press release “announcing an approximately 40% reduction in its workforce,” stating that “