bluebird bio, Inc.
Case Overview
30 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 05/28/2024 |
Status: | Status: Investigating |
Company Name: | Company Name: bluebird bio, Inc. |
Court: | Court: District of Massachusetts |
Case Number: | Case Number: 1:24cv10803 |
Class Period: | Class Period: 04/24/2023 - 12/08/2023 |
Ticker: | Ticker: BLUE |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of those who acquired bluebird bio, Inc. (“Blue” or the “Company”) (NASDAQ: BLUE) securities during the period of April 24, 2023 through December 8, 2023, inclusive (“the Class Period”). Investors have until May 28, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On December 8, 2023, Blue announced that the United States Food and Drug Administration (FDA) approved its drug Lyfgenia, also known as lovo-cel for the treatment of sickle cell disease in patients ages 12 and older who have a history of vaso-occlusive events. However, the Lyfgenia approval came with a black box warning for haematological malignancies after two patients developed AML during the clinical trials. Prior press releases and statements did not indicate the possibility of a black box warning. On an earnings call that same day, the Company’s Chief Medical Officer stated that “[t]he potential for a box warning was something we anticipated and it was built into our commercial projections.” On this news, the price of Blue shares declined by $1.95 per share, or approximately 40%, from $4.81 on December 7, 2023 to close at $2.86 per share on December 8, 2023.
The lawsuit alleges that Blue provided investors with false and misleading information in order to bolster investor expectations and share prices. Specifically, the Company created the false impression that: (i) they could obtain FDA approval for lovo-cel without any box warnings for haematological malignancies; (ii) they would be granted a priority review voucher by the FDA and in turn sell it in order to strengthen their financial position for the lovocel launch; (iii) as a result, the Company had significantly overstated Lyfgenia’s clinical and/or commercial prospects; and (iv) therefore, the Company’s public statements were materially false.
On December 8, 2023, Blue announced that the United States Food and Drug Administration (FDA) approved its drug Lyfgenia, also known as lovo-cel for the treatment of sickle cell disease in patients ages 12 and older who have a history of vaso-occlusive events. However, the Lyfgenia approval came with a black box warning for haematological malignancies after two patients developed AML during the clinical trials. Prior press releases and statements did not indicate the possibility of a black box warning. On an earnings call that same day, the Company’s Chief Medical Officer stated that “[t]he potential for a box warning was something we anticipated and it was built into our commercial projections.” On this news, the price of Blue shares declined by $1.95 per share, or approximately 40%, from $4.81 on December 7, 2023 to close at $2.86 per share on December 8, 2023.
The lawsuit alleges that Blue provided investors with false and misleading information in order to bolster investor expectations and share prices. Specifically, the Company created the false impression that: (i) they could obtain FDA approval for lovo-cel without any box warnings for haematological malignancies; (ii) they would be granted a priority review voucher by the FDA and in turn sell it in order to strengthen their financial position for the lovocel launch; (iii) as a result, the Company had significantly overstated Lyfgenia’s clinical and/or commercial prospects; and (iv) therefore, the Company’s public statements were materially false.