CASES
Geron Corporation
Class Period: Jul 30, 2010 to Dec 6, 2010
Lead Plaintiff Deadline: Feb 21, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Geron Corporation (GERN) ("Geron" or the "Company") on behalf of all securities purchasers from July 30, 2010 through December 6, 2010, inclusive ("Class Period"), in the United States District Court for the Northern District of California.
The complaint alleges that during the Class Period, Greenwood made several misstatements concerning Geron's funding. Defendant David Greenwood ("Greenwood") twice stated that Geron was funded for the "near-term," trumpeting the amount of cash the Company had on hand, which he put at $156 million at the end of July, 2010 and $146 million at the end of October, 2010. Significantly, Defendant Greenwood stated that Geron had a "running net burn number" of $48 million annualized in October, 2010, and $48 to $50 million annualized in July, 2010. Accordingly, the Company should have been funded for 3 years.
Yet, in an about-face, only 5 weeks after Greenwood's October 2010 statement, on December 6, 2010, after the market closed, Defendants announced an $87 million secondary public offering (the "Offering") - which, with the underwriters over-allotment became a $93 million offering. On December 7, 2010, Defendants announced the pricing of the Offering - at $5.00 per share, when Geron shares were trading at $6.12 per share on December 6, 2010. Allegedly, after the December 6, 2010 after-market disclosure and the December 7, 2010 statement, Geron stock fell almost 20% in heavy trading, from a December 6, 2010 close of $6.12 to a December 7, 2010 close of $5.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.