Caribou Overhyped Gene-Therapy Testing, Investor Class Suit Says

Caribou Biosciences, Inc. oversold its lead therapy’s efficacy while hiding a poor financial outlook, causing a 26% share price dip when analysts noted concerns in 2024, a proposed class action says.

The pharmaceutical company and two then-executives concealed that Caribou, which develops genome-edited cell therapies to treat cancers, faced a significant risk of running out of cash to operate, says the investor lawsuit filed in the US District Court for the Northern District of California on Dec. 24.

Caribou’s leading product is CB-010, which is being tested in a phase 1 clinical trial for large B cell non-Hodgkin’s lymphoma, plaintiff ...