Brainstorm Cell Therapeutics Sued for Misleading on ALS Therapy

Brainstorm Cell Therapeutics Inc. allegedly misled investors about the effectiveness of its NurOwn treatment for amyotrophic lateral sclerosis, risks associated with it, and the Food and Drug Administration’s negative response, a shareholder lawsuit says.

The company and its top executives allegedly misrepresented NurOwn’s efficacy for ALS patients and downplayed the severity of the FDA’s refusal to approve the treatment for more than a year, according to the complaint filed Wednesday is US District Court for the Southern District of New York.

When Brainstorm first disclosed to investors that it hadn’t received FDA approval in November 2022, it expressed disappointment but ...