In­vestor suit fu­eled by news ar­ti­cles over failed can­cer drug ends in $24M set­tle­ment

Once rid­ing high with a mar­ket val­ue close to $1 bil­lion, Geron on Tues­day said it set­tled an in­vestor law­suit for $24 mil­lion.

Stock­hold­ers claimed the com­pa­ny wrong­ly tout­ed ear­ly da­ta for a Janssen-part­nered can­cer drug can­di­date and failed to re­veal the ac­tu­al dis­ap­point­ing pri­ma­ry end­point re­sults.

Back in 2018, the com­pa­ny tout­ed the fa­vor­able sur­vival rate of the can­di­date known as ime­tel­stat, say­ing it helps pa­tients live longer with a type of bone mar­row dis­or­der, and the com­pa­ny com­pared the re­sults to oth­er clin­i­cal tri­als, the in­vestors claimed, stat­ing “that mul­ti­ple out­come mea­sures sug­gest­ed clin­i­cal ben­e­fit from the use of ime­tel­stat.”

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