Capricor Shareholder Sues Board After FDA’s Heart Therapy Spurn

Capricor Therapeutics Inc.‘s board overhyped regulatory approval odds for its cell therapy to treat a serious heart condition, leading to a series of stock drops, a shareholder lawsuit said.

The biotechnology company’s stock price fell almost 33% to close at $7.64 when it announced July 11 that the Food and Drug Administration required more clinical data after reviewing the treatment’s biologics license application. The stock drop was the biggest one-day plunge in nearly two years, according to data compiled by Bloomberg. CEO Linda Marbán said in that press release that Capricor planned to submit data from an ongoing, later-stage ...