Investigation into CARGO Therapeutics, Inc.: Potential Securities Law Violations
Los Angeles, CA – The Schall Law Firm, a renowned national shareholder rights litigation firm, has announced that it is investigating potential securities laws violations by CARGO Therapeutics, Inc. (“CARGO” or “the Company”) (NASDAQ: CRGX). The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose material information to investors.
Background on CARGO Therapeutics, Inc.
CARGO Therapeutics is a clinical-stage biotechnology company that focuses on developing and commercializing novel therapies for the treatment of cancer and other diseases. The Company’s lead program, CRGX-101, is a first-in-class, off-the-shelf, allogeneic, chimeric antigen receptor T cell (CAR-T) therapy targeting mesothelin, a protein overexpressed in various cancers. CARGO’s pipeline also includes CRGX-201, a CAR-T therapy targeting GD2, and CRGX-301, a CAR-T therapy targeting HER2.
Alleged Misstatements and Omissions
The Schall Law Firm’s investigation comes after a series of announcements from CARGO Therapeutics regarding its clinical trials and business developments. Some of the alleged misstatements and omissions include:
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On September 21, 2024, CARGO announced that it had initiated a Phase 1/2 clinical trial of CRGX-101 in patients with pancreatic cancer. The Company stated that the trial was designed to evaluate the safety, tolerability, and efficacy of CRGX-101 in this patient population.
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On October 15, 2024, CARGO announced that it had dosed the first patient in the Phase 1/2 clinical trial of CRGX-101. The Company stated that it expected to report top-line data from the trial in the first quarter of 2025.
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On February 15, 2025, CARGO announced that it had completed enrollment in the Phase 1/2 clinical trial of CRGX-101. The Company stated that it expected to report top-line data from the trial in the second quarter of 2025.
However, on March 1, 2025, a report was published alleging that the Company had delayed reporting the top-line data from the Phase 1/2 clinical trial of CRGX-101 due to safety concerns. The report also alleged that the Company had downplayed the significance of these safety concerns in its public statements.
Impact on Investors
If the allegations are true, investors in CARGO Therapeutics may have been misled about the safety and efficacy of its lead product, CRGX-101. This could potentially impact the Company’s stock price and could result in significant losses for investors.
Impact on the Biotech Industry
The investigation into CARGO Therapeutics could have broader implications for the biotech industry as a whole. The industry relies heavily on clinical trial data to support the development and commercialization of new therapies. If investors lose confidence in the accuracy and reliability of clinical trial data, it could impact the ability of biotech companies to raise capital and bring new therapies to market.
Conclusion
The investigation into CARGO Therapeutics is ongoing, and it is important for investors to stay informed about any developments. If you are an investor in CARGO Therapeutics and have lost money, you may be entitled to compensation. The Schall Law Firm encourages investors to contact them to discuss their legal rights and potential remedies.
Regardless of the outcome of this investigation, it serves as a reminder of the importance of transparency and accuracy in communications from public companies. The biotech industry, in particular, relies heavily on the trust and confidence of investors, and any perceived misstatements or omissions can have significant consequences.
As the investigation unfolds, it will be important for investors to stay informed and seek professional guidance from their financial advisors and legal counsel, as necessary.
