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Published January 17, 2025
Investors in Caribou Biosciences were shocked after an analyst report revealed the pharmaceutical firm’s new drug posed safety concerns. When investors realized they’d been sold snake water, they quickly sold their shares, sending Caribou’s stock price tumbling 25%. Now, some of those investors are taking legal action to recover their losses.
Caribou Biosciences was researching a new drug called CB 010, which might treat Hodgkin Lymphoma. In its financial reports, Caribou repeatedly claimed CB 010 showed promising results. Company executives also claimed Caribou was in great financial shape, with enough cash to last until at least 2026. But, Caribou executives knew better.
Investors learned the truth in June 2024 when Evercore published a report questioning CB-010’s effectiveness and calling the drug a “safety risk.” In July 2024, Caribou blindsided investors when it admitted it was running out of cash and had to seriously curtail research activities.
Shocked investors quickly dumped their shares. Some of those investors are now suing the company.