Fate Therapeutics Gets J&J Partnership Class Action Tossed Again

Fate Therapeutics Inc. sidestepped a proposed investor class action for a second time, after a federal judge granted the drug developer’s bid to toss fraud claims alleging it misrepresented a collaboration agreement with Johnson & Johnson unit Janssen Biotech Inc.

The suit failed to show that investor losses stemmed from any misleading statements around the sustainability of Fate’s partnership with Janssen to develop cell-based cancer immunotherapies, Judge Ruth Bermudez Montenegro in the US District Court for the Southern District of California said in an order Monday.

Fate’s stock price dropped 61% in January 2023 after it announced that the collaboration ...