Investigation into Potential Securities Fraud Claims Against Caribou Biosciences, Inc.
Bronstein, Gewirtz & Grossman, LLC, a leading securities fraud class action law firm, is currently investigating potential claims on behalf of purchasers of Caribou Biosciences, Inc. (Caribou or the Company) common stock. The investigation concerns whether Caribou and certain of its executives and directors have violated the Securities Exchange Act of 1934 through alleged securities fraud.
Background
Caribou Biosciences is a leading CRISPR gene editing company based in California. The Company focuses on developing and commercializing CRISPR genome editing technologies for various applications, including research, agriculture, and therapeutics. Caribou’s stock began trading on the NASDAQ stock exchange in December 2022.
Allegations of Securities Fraud
The investigation is based on allegations that Caribou and certain of its executives and directors made false and misleading statements to the market regarding the Company’s financial condition, business prospects, and research and development efforts. Specifically, it has been alleged that the Company downplayed the challenges it was facing in developing its CRISPR gene editing technologies and overstated its progress in commercializing these technologies.
Timeline of Events
The investigation focuses on statements made by Caribou between January 1, 2023, and July 14, 2023. During this period, the Company issued several press releases and held conference calls with investors, during which it made allegedly misleading statements about its financial condition and progress in developing its CRISPR gene editing technologies. For example:
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On January 10, 2023, Caribou announced its fourth quarter and full year 2022 financial results, reporting revenue of $12.5 million and a net loss of $98.5 million. The Company stated that it expected to achieve profitability in 2024.
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On March 22, 2023, Caribou announced a collaboration with a major agricultural company to develop CRISPR gene editing technologies for crops. The Company stated that it expected to generate significant revenue from this collaboration in the near term.
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On June 15, 2023, Caribou announced that it had entered into a licensing agreement with a leading pharmaceutical company for the use of its CRISPR gene editing technology in the development of therapeutics. The Company stated that it expected to receive significant upfront and milestone payments under the agreement.
However, it has since been alleged that these statements were overly optimistic and did not reflect the true state of Caribou’s financial condition and progress in developing its CRISPR gene editing technologies.
Effects on Individual Investors
If the allegations of securities fraud are proven, investors who purchased Caribou securities prior to July 14, 2023, and continue to hold to the present, may be entitled to compensation. The investigation is ongoing, and those affected are encouraged to visit the Bronstein, Gewirtz & Grossman, LLC website at bgandg.com/CRBU to learn more and assist the investigation.
Effects on the World
The investigation into potential securities fraud at Caribou Biosciences raises concerns about the accuracy and reliability of statements made by biotech companies regarding their financial condition and research and development efforts. It also highlights the importance of transparency and honesty in the communication between companies and investors, particularly in the rapidly evolving field of CRISPR gene editing.
Conclusion
Bronstein, Gewirtz & Grossman, LLC’s investigation into potential securities fraud at Caribou Biosciences is ongoing, and the firm encourages investors who purchased the Company’s securities prior to July 14, 2023, and continue to hold to the present, to visit the firm’s website for more information and to assist the investigation. The allegations of securities fraud, if proven, could have significant implications for individual investors and the biotech industry as a whole, emphasizing the importance of transparency and honesty in corporate communications.
