Geron Corporation (GERN) Securities Class Action Lawsuit Update [April 8, 2025]

Introduction  

Geron Corporation is a pharmaceutical company. One of its principal products is Rytelo, which received FDA approval in 2024.   

Geron touted Rytelo’s market potential because it targeted a purportedly significant unmet need. Soon after Rytelo’s launch, Geron boasted about Rytelo’s quick uptake and market success. The Company claimed the rapid uptake reinforced Geron’s optimistic reports for continued demand and market success. 

But, in February 2025, Rytelo’s fortunes reversed. Geron revealed Rytelo’s growth flattened and, with it, Geron’s revenues stalled out. Analysts expressed shock at this news.  Investors quickly dumped their Geron shares, sending the stock price crashing 32% overnight.  

Geron Corp. (GERN) Class Action Lawsuit Case Details  

Dabestani v. Geron Corp., et al 3:25-cv-02507 

U.S. District Court, Northern District of California 

Filed on March 13, 2025  

Geron Corp. (GERN) Company Profile  

Geron is a biopharmaceutical company which specializes in treatments for adults with blood cancers. One of its principal products is Rytelo (imetelstat), a telomerase inhibitor injection for people with lower-risk myleodypastic syndromes (LR-MDS). It also has several drugs in research and development, including a Phase 3 trial regarding a second indication for Rytelo.    

Geron Corp. (GERN) Securities Lawsuit Class Period 

June 7, 2024 to February 25, 2025   

 The Geron class action lawsuit seeks to represent GERN investors who acquired Geron securities during the class period.

Geron Corp. (GERN) Lawsuit Allegations  

The Complaint concerns Geron’s statements regarding the launch and growth potential of Rytelo.   

On June 7, 2024, Geron announced FDA approval of Rytelo. Geron executives touted Rytelo’s great market potential to satisfy purportedly significant unmet need.  The Company's VP asserted: “[o]ur research supports the significant unmet treatment needs for the low-risk MDS patient population,” and “the unmet need within this market is very high.”   

Through the next two quarters, Geron’s executives boasted about the drug’s swift uptake. In Q3-24, Geron released its Q3-24 financial results, boasting $28.2 million in Rytelo sales, “which exceeded our expectations. . . . This gives us confidence in future continued demand and momentum for Rytelo.” As a result, executives concluded, “[t]hese early launch dynamics reinforce our expectations for continued demand and promising growth.” Geron's projected revenue outlook factored in these rosy sales predictions. 

Plaintiffs' Complaint alleges these statements were false or misleading because they gave the false impression about Geron's ability to predict Rytelo's growth and gave the misleading impression Geron had reliable information about Rytelo's revenue projections. Instead, Plaintiffs allege Geron downplayed Rytelo’s shortcomings and lack of market penetration.   

The Truth Emerges  

On February 26, 2025, Geron released its Q4-24 financial results. These results revealed “flat revenue trends over the last few months.” Patient uptake of Rytelo flattened. As one executive explained, “so we have seen some [revenue] softness and its related to new patient starts.” Executives revealed fewer patients started Rytelo than initially anticipated and the market was underpenetrated, despite initial claims of unmet need.  

Market Reaction  

Analysts were shocked by Geron’s news and lowered Geron’s target price and downgraded the stock’s rating.  

Investors reacted negatively to this news. Geron’s common stock plummeted 32% in just one day.    

Next Steps  

• Submissions for lead plaintiff are due May 12, 2025    

• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.    

• The Court will then consider motion for class certification.     

• The Court may later consider a Motion to Dismiss.