NEW YORK, March 12, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Cabaletta Bio, Inc. (“Cabaletta” or the “Company”) CABA and some of its officers. The class action, filed in the United States District Court for the Eastern District of Pennsylvania and registered as 22-cv-00737, is on behalf of a class consisting of all persons and entities other than defendants who have purchased or otherwise acquired: (a) Common Shares of Cabaletta pursuant to and/or traceable to the Offer Documents (defined below) issued in connection with the Company’s initial public offering completed on or about October 24, 2019 (the “IPO” or the “Offer”); and/or (b) Cabaletta securities between October 24, 2019 and December 13, 2021, both dates inclusive (the “Class Period”). Plaintiff is pursuing claims against defendants under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who has purchased or otherwise acquired common stock of Cabaletta pursuant to the IPO and/or traceable; and/or Cabaletta securities during the Class Period, you have until April 29, 2022 to ask the Court to appoint you as Lead Plaintiff in the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those making inquiries by email are encouraged to include their mailing address, phone number and number of shares purchased.
Cabaletta, a clinical-stage biotechnology company, is focused on the discovery and development of T cell therapies designed for patients with B cell-mediated autoimmune diseases. autoantibodies (CAAR) that are designed to bind and selectively kill B cells, which produce pathogenic autoantibodies or pathogenic B cells. Cabaletta’s lead product candidate is DSG3-CAART, which is in a Phase I clinical trial for the treatment of mucosal pemphigus vulgaris (the “Phase 1 Clinical Trial”), an autoimmune bullous skin disease, and haemophilia A with factor VIII alloantibodies.
On September 30, 2019, Cabaletta filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, as amended, was declared effective by the SEC on October 24, 2019 (the “registration statement”).
On October 25, 2019, Cabaletta filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the registration statement (the “Prospectus” and, together with the registration, the “offering documents”) .
Per the offering documents, Cabaletta completed the IPO, selling approximately 6.8 million common shares at a price of $11.00 per share, for proceeds of approximately $69.5 million. to the Company after applicable discounts and underwriting fees, and before expenses.
The complaint alleges that the offering documents were negligently prepared and, as a result, contained misrepresentations of material facts or failed to state other facts necessary to ensure that the statements made were not misleading and did not been prepared in accordance with the rules and regulations governing their preparation. In addition, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, the Offering Materials and the Defendants made false and/or misleading statements and/or failed to disclose that: (i) primary data from the Phase 1 clinical trial indicated that DSG3-CAART had , among other things, worsened some participants’ disease activity scores and required additional systemic medication to improve disease activity after DSG3-CAART infusion; (ii) as a result, DSG3-CAART was not as effective as the Company had represented it to investors; (iii) therefore, the Company had exaggerated the clinical and/or commercial prospects of DSG3-CAART; and (iv) as a result, the Company’s public statements were materially false and misleading at all material times.
On December 14, 2021, Cabaletta issued a press release “report[ing] first-line data on the biological activity of the two lowest dose cohorts of the Phase 1 DesCAARTes™ clinical trial of DSG3-CAART for the treatment of patients with mucosal pemphigus vulgaris (mPV). Among other findings, Cabaletta reported that two participants in the cohort had “worsening disease activity scores.” . . after DSG3-CAART infusion” and therefore “reduced or discontinued selected systemic therapies prior to DSG3-CAART infusion, as required by protocol”, while another participant “subsequently received systemic medication to improve disease activity after DSG3-CAART infusion”.
On this news, Cabaletta’s stock price fell $9.15 per share, or 73.14%, to close at $3.36 per share on December 14, 2021.
At the time this complaint was filed, the price of Cabaletta common stock continues to trade below the offering price of $11.00 per share, hurting investors.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading law firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. To see www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980