Capricor Investor Sues After Disappointing FDA Return on Therapy

Capricor Therapeutics Inc. and its CEO overhyped regulatory approval odds for its cell therapy to treat a serious heart condition, leading to a series of stock drops, a proposed class action said.

Capricor said last week that the US Food and Drug Administration required more information after reviewing the treatment’s biologics license application. The biotechnology company’s stock price fell almost 33% to close at $7.64 that day—its steepest one-day slide in nearly two years, according to data compiled by Bloomberg.

CEO Linda Marbán said in the same press release that Capricor plans to submit data from an ongoing, later-stage clinical ...