Case Name: Zerbato v. AlloVir, Inc., et al.
Case Number 1:24-cv-10152-DJC
Jurisdiction U.S. District Court, District of Massachusetts
Class Period
January 11, 2023 – December 21, 2023, inclusive
If you bought AlloVir securities during this period, you might be eligible to claim compensation from a recent settlement in the AlloVir securities lawsuit.
Settlement Amount
$1 million. Investors who purchased ALVR securities during the class period could receive a share of the settlement fund.
Allegations Against AlloVir and Posoleucel Disclosures
Plaintiffs say AlloVir, Inc. (NASDAQ: ALVR) misled investors about its key drug candidate, posoleucel. From early 2023 to late 2023, company leaders painted a rosy picture of posoleucel’s clinical trials and future prospects. Behind closed doors, though, the trials were struggling. On December 22, 2023, AlloVir announced it was pulling the plug on several Phase 3 trials and scaling back investment in the program. The stock nosedived. Lead Plaintiffs Julio Maurice Bueno and Harry Levin filed suit against AlloVir, CEO Diana M. Brainard, and CFO Vikas Sinha under Sections 10(b) and 20(a) of the Securities Exchange Act.
AlloVir Securities Class Action Litigation History
The case kicked off in early 2024. AlloVir and its executives tried to get the lawsuit thrown out. The court hadn’t ruled when the parties started talking settlement. Early mediation didn’t pan out. A second round, however, led to a deal: a $1 million cash settlement. Judge Casper gave it a preliminary green light on April 23, 2025, and finalized approval after a fairness hearing on July 30, 2025.
Court Approval and Shareholder Settlement Terms
Judge Casper called the settlement fair, noting it was hammered out through tough, arm’s-length negotiations. The process for handling claims was clear and well-executed. Notices went out to investors via postcards, online portals, and published summaries. The deal protects AlloVir from future related lawsuits. Payouts will be split based on when you bought or sold ALVR securities and how much you lost after the disclosures hit.
AlloVir Settlement Fund Payout Details
If you file a valid claim, you’ll get a share of the $1 million fund, calculated based on your transactions and losses. First, the fund covers legal fees (up to 33%), and administrative expenses. Claims under $10 won’t qualify to keep the fund manageable.
You’ll need to send in brokerage records by August 19, 2025. Approved payments will come by check or direct deposit, tied to when you bought or sold and how the stock price moved after key disclosures.
Securities Settlement Judgment and Case Conclusion
Judge Casper issued a final ruling, closing the case with prejudice. AlloVir stands by its position, denying any wrongdoing. If you didn’t opt out by July 9, 2025, you’re bound by the settlement terms. The court keeps oversight to ensure everything goes smoothly. If the deal falls apart, the lawsuit could pick back up. For now, the fund will pay out, eligible shareholders will get their share, and the case is done. The disclosures are out, the market’s moved on, and this chapter’s closed.
