GERN Lawsuit Alert! Class Action Lawsuit Against Geron Corporation

A class action lawsuit was filed against Geron Corporation (GERN) by Levi & Korsinsky on March 13, 2025. The plaintiffs (shareholders) alleged that they bought GERN stock at artificially inflated prices between June 7, 2024 and February 25, 2025 (Class Period) and are now seeking compensation for their financial losses. Investors who bought Geron stock during that period can click here to learn about joining the lawsuit.

Geron is a commercial-stage biopharmaceutical company, focused on developing novel treatments for improving and prolonging the life span of people living with blood cancer. Geron is the only company in the U.S. with an FDA approved oligonucleotide telomerase inhibitor drug, Rytelo (imetelstat), to be used for treatment of certain adult patients with lower-risk myelodysplastic syndromes (LR-MDS) with transfusion-dependent anemia.

The company’s tall claims about the commercial launch and growth potential of Rytelo are at the heart of the current complaint.

Geron’s Misleading Claims

According to the lawsuit, Geron and six of its current and/or former senior officers (Individual Defendants) repeatedly made false and misleading public statements throughout the Class Period. Particularly, they are accused of omitting truthful information about Rytelo’s potential, and ancillary issues, from SEC filings and related material.

For instance, during the Class Period, the management held a special investor call dedicated to the launch of Rytelo. The CEO noted that there are roughly 13,200 U.S. patients with LR-MDS, Rytelo’s targeted patient pool. He further added that Rytelo could become part of the “standard of care and help address unmet need in lower-risk MDS patients with transfusion dependent anemia who are ESA ineligible, ESA relapsed/refractory RS-negative and ESA relapsed/refractory RS-positive with high transfusion burden.”

Additionally, in a July 23, 2024, press release, the CEO highlighted the favorable uptake of Rytelo and positive customer feedback within the first month of its launch, and expressed confidence in the continued demand momentum for the drug.

Finally, during an August 8, 2024 earnings call, the CEO acknowledged that it had been just eight weeks from the FDA’s approval of Rytelo and six weeks from its commercial launch in the U.S. He added that the company was encouraged by the early launch results and anticipated solid growth going forward.

However, subsequent events (discussed below) revealed that Geron misled investors about the growth potential of its lead drug candidate, Rytelo.

Plaintiffs’ Arguments

The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the business and prospects during the Class Period. Importantly, the defendants are accused of misleading investors about the launch and growth potential of Rytelo.

The information became clear on February 26, 2025, when Geron published its fiscal fourth-quarter results. The company noted that the growth for Rytelo had “flattened over the preceding months” and attributed the sluggish growth to “seasonality, competition, lack of awareness for Rytelo, and the burden of the monitoring requirement necessary for the drug treatment.” The news was received negatively by investors and analysts, who instantly punished the company’s stock price, dragging it down by 32.1%.

To conclude, the defendants allegedly misled investors about Rytelo’s growth prospects as the only telomerase inhibitor approved for commercial use by the U.S. FDA. Owing to these challenges, GERN stock has lost nearly 63.8% year-to-date, causing massive damage to shareholder returns.