Investors seeking to lead a securities class action against Capricor Therapeutics must file their motions by September 15. This legal development follows a significant regulatory setback for the biotechnology company’s lead therapeutic candidate, Deramiocel. Despite a notable single-day surge of 13.5% that pushed shares to $6.74 on Friday, the stock continues to demonstrate extreme price volatility.
Regulatory Decision Sparks Legal Challenges
The catalyst for current investor actions occurred on July 11, when the U.S. Food and Drug Administration issued a Complete Response Letter rejecting Deramiocel’s approval application. Regulators cited insufficient evidence of effectiveness and requested additional clinical data to support the submission. Particular concerns were raised regarding chemistry, manufacturing, and controls (CMC) issues.
Market reaction to this regulatory decision was immediate and severe. Share prices collapsed from $11.40 to $7.64 per share in response to the news. This dramatic decline—compounded by previous losses recorded throughout May and June—prompted multiple law firms to initiate class action proceedings against the company.
Legal Notices Intensify Ahead of Deadline
Since September 5, prominent legal practices including Levi & Korsinsky, Portnoy Law Firm, and Rosen Law Firm have issued repeated alerts to investors regarding the approaching September 15 deadline. The allegations center on claims that Capricor made false or misleading statements between October 2024 and July 2025 concerning Deramiocel’s regulatory prospects and safety profile.
Should investors sell immediately? Or is it worth buying Capricor Therapeutics?
- Claim Period: October 9, 2024 to July 10, 2025
- Primary Allegation: Misrepresentation of approval prospects and safety data
- Critical Date: September 15, 2025 (lead plaintiff motion deadline)
Financial Performance Reflects Development Challenges
The company’s second-quarter financial results, released August 11, highlight ongoing difficulties. Capricor reported a net loss of $25.9 million ($0.57 per share) while generating zero revenue during the period. This represents a significant deterioration from the same quarter last year, when the company posted an $11.0 million loss with $4.0 million in revenue.
Management’s strategy focuses on resubmitting the Deramiocel application in the third quarter of 2025, incorporating data from the ongoing HOPE-3 Phase 3 study. Results from this trial are anticipated by year-end 2025. Concurrently, Capricor is advancing its exosome technology platform and initiated a Phase 1 study for a novel vaccine candidate in August.
Whether the stock can maintain its recent price recovery remains uncertain. Analyst consensus estimates project a third-quarter loss of $0.54 per share. The technical chart outlook remains fragile, with the recent advance appearing as a temporary respite amid ongoing regulatory and legal uncertainties.
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