Brainstorm Cell Therapeutics Inc. (NASDAQ:BCLI) is currently under a class action lawsuit led by Robbins LLP, a prominent legal firm specializing in shareholder rights litigation. The suit is on behalf of investors who purchased BCLI securities between August 15, 2022, and September 27, 2023.
The company is accused of misleading investors about the efficacy of its ALS (Amyotrophic lateral sclerosis) drug, NurOwn. On August 15, 2022, Brainstorm Cell announced its Biologics License Application (BLA) to the FDA for NurOwn. However, the application was met with a refusal to file a letter from the FDA, resulting in a significant 42.21% drop in BCLI's share price.
The Cellular, Tissue, and Gene Therapies Advisory Committee further scrutinized the effectiveness of NurOwn on September 27, 2023. The committee found insufficient evidence supporting the drug's effectiveness, causing another drop in BCLI's share price by $0.19 per share or 48.72%.
The lawsuit alleges that Brainstorm Cell downplayed the FDA's refusal and obscured risks associated with the BLA submission. Aaron Dumas Jr., a representative of Robbins LLP, is available for more information about the case.
Shareholders eligible to participate in this class action are advised to file their lead plaintiff papers by January 2, 2024. Robbins LLP has a strong track record in shareholder rights litigation and has obtained over $1 billion for shareholders to date. The firm operates on a contingency fee basis and offers alerts about corporate wrongdoings or updates on the class action against BCLI through its Stock Watch service.
InvestingPro Insights
In light of the recent developments with Brainstorm Cell Therapeutics Inc. (BCLI), the following InvestingPro data and tips may provide valuable insights for investors.
InvestingPro data shows that BCLI has a market cap of 7.2M USD. The company's price-to-earnings (P/E) ratio stands at -0.27, indicating that the company is not profitable at the moment. In addition, the return on assets for the last twelve months as of Q2 2023 is -180.22%, suggesting that BCLI is not generating a positive return on its assets.
InvestingPro Tips highlights that BCLI is quickly burning through cash and operates with a poor return on assets. The stock has experienced significant price volatility and has fallen significantly over the last year. Analysts do not anticipate the company will be profitable this year, which aligns with the negative P/E ratio.
These insights are particularly relevant to the current situation of BCLI, as the company faces a class-action lawsuit and scrutiny over the effectiveness of its ALS drug, NurOwn. The InvestingPro platform offers additional tips and real-time data for investors looking to make informed decisions.
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