A class action lawsuit was filed against Bluebird Bio, Inc. (NASDAQ:BLUE) on March 28, 2024. The plaintiffs (shareholders) alleged that they bought BLUE stock at artificially inflated prices between April 24, 2023 and December 8, 2023 (Class Period) and are now seeking compensation for their financial losses. Investors who bought BLUE stock during that period can click here to learn about joining the lawsuit.
Massachusetts-based Bluebird Bio is a biotechnology company that focuses on developing therapies for severe genetic diseases. It has developed treatments for sickle cell disease (SCD), β-thalassemia, and cerebral adrenoleukodystrophy.
The plaintiffs maintain that the company and three of its senior officers deceived investors by repeatedly lying and withholding vital information about the possibility of obtaining the U.S. Food and Drug Administration (FDA) approval for Lyfgenia or lovotibeglogene autotemcel (lovo-cel) therapy for SCD without any box warnings for haematological malignancies and ancillary issues.
The information became clear on December 8, 2023, when Bluebird issued a press release announcing the FDA approval for its ex-vivo gene therapy drug Lyfgenia for SCD. The approval came with a black box warning for haematological malignancies and the requirement for regular check-ups for cancer. Moreover, the FDA refused to grant Bluebird’s anticipated priority review voucher.
Interestingly, during the Class Period, the defendants omitted truthful information about any box warnings and stated that the company would be able to launch lovo-cel commercially in early 2024.
As per the class action lawsuit, Bluebird Bio caused its stock to trade at artificially inflated prices by knowingly and recklessly misleading investors about the company’s business and prospects during the Class Period.
Notably, on December 8, 2023, BLUE stock plunged by 40.5%, causing massive damage to shareholders’ returns.
