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Class action lawsuits

Rocket Pharmaceuticals Faces Class Action Lawsuit Over Alleged Misleading Statements

Strategic Insights

— 1 min read

Rocket Pharmaceuticals, a biotechnology company developing gene therapies for rare diseases, is at the center of a shareholder class action lawsuit following allegations that it misled investors about the safety and progress of its critical RP-A501 gene therapy trial for Danon disease. The company's shares crashed over 60% in a single day after the FDA placed a clinical hold on the trial, and investors are now seeking compensation for their losses. Hagens Berman, a global plaintiffs' rights firm, is leading the investigation and encourages investors who suffered substantial losses to come forward.

Key Takeaways:

  • The lawsuit, styled Ho v. Rocket Pharmaceuticals, Inc., et al., No. 3:25-cv-10049 (D. N.J.), alleges that Rocket Pharmaceuticals provided materially false and misleading statements regarding the safety, efficacy, and clinical protocol of its RP-A501 Phase 2 pivotal trial.
  • The company is accused of failing to disclose significant protocol changes and known risks of Serious Adverse Events (SAEs), including patient deaths.
  • On February 27, 2025, Rocket told investors it had "made strong progress in advancing our gene therapy" and cited the Phase 1 results of RP-A501, which created an artificially inflated stock price.
  • The company's narrative unraveled on May 27, 2025, when Rocket revealed in an update call that the U.S. Food and Drug Administration had placed a clinical hold on the RP-A501 trial following a patient's SAE and subsequent death.
  • The stock price plummeted 62% in a single day and down 75% from its February 27, 2025 closing price.
  • Hagens Berman is investigating claims that Rocket Pharmaceuticals may have misled investors about its Phase 2 protocol and whether it secretly amended it without first notifying the FDA and investors.

Statistics:

  • First day stock price drop: 62%
  • One-month stock price change: -75% from its February 27, 2025 closing price
  • Class period: February 27, 2025 - May 26, 2025
  • Lead plaintiff deadline: August 11, 2025
  • Hagens Berman's practice has secured more than $2.9 billion in corporate accountability cases

Sources:

  • "Ho v. Rocket Pharmaceuticals, Inc., et al., No. 3:25-cv-10049 (D. N.J.)"
  • "Hagens Berman Urges Rocket Pharmaceuticals Investors to File a Lead Plaintiff for the Upcoming Class Action Lawsuit"
  • SEC Whistleblower program
  • Hagens Berman website
  • COMTEX_467402813/2010/2025-07-17T15:07:46

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