Fate Therapeutics Misled About J&J Partnership, Investor Says

Fate Therapeutics Inc. misrepresented the sustainability of its collaboration agreement with Johnson & Johnson unit Janssen Biotech Inc. in public statements, earnings calls, and SEC filings, an investor says in a proposed class action.

The biopharmeceutical company announced the partnership’s termination Jan. 5, and its stock price dropped 61% the following day, shareholder Ali Hadian says. He filed his complaint Jan. 20 in the US District Court for the Southern District of California.

Fate made overly optimistic statements about the arrangement, a global collaboration and option agreement for cell-based cancer immunotherapies, over the course of nearly three years, Hadian says. ...