Deadline Alert: Geron Investors Urged to Act Before May 12 Deadline in Securities Class Action

Geron Corporation (NASDAQ: GERN) faces a mounting legal challenge as law firm Faruqi & Faruqi, LLP continues its investigation into potential securities fraud claims. Investors who purchased Geron shares between February 28, 2024, and February 25, 2025, are urged to act swiftly to preserve their rights, with a critical deadline of May 12, 2025, for seeking lead plaintiff status in the ongoing class action lawsuit. The case centers on allegations that Geron and its executives misled the public about the commercial viability of its drug Rytelo, triggering a catastrophic 32% stock plunge in February 2025.

Key Allegations and the Rytelo Controversy

At the heart of the dispute is Geron’s flagship product, Rytelo, a treatment for anemia in chronic kidney disease (CKD) patients. The complaint alleges that Geron executives exaggerated the drug’s market potential while concealing critical risks, including:
- Weekly patient monitoring requirements, which could deter healthcare providers from prescribing it.
- Seasonality effects, such as reduced sales during certain quarters.
- Intense competition from existing therapies like Roche’s Mircera and Aranesp, marketed by Amgen.
- Low awareness among eligible patients, particularly “first-line ESA ineligible patients,” a key target demographic.

Ask Aime: "Was Geron's Rytelo treatment for anemia in CKD patients overhyped and what's the impact on its stock price?"

Instead of disclosing these challenges, the lawsuit claims Geron’s leadership expressed “unwarranted confidence” in Rytelo’s ability to capture an “unmet need” in the market. This narrative began unraveling on February 26, 2025, when Geron reported fourth-quarter 2024 financial results. The company admitted that Rytelo’s growth had stalled due to the very risks it had allegedly downplayed. The revelation sent shares plummeting from $2.37 to $1.61 in a single day—a 32.07% loss.

Ask Aime: Geron's Rytelo faces SEC scrutiny

Timeline and Market Impact

The timeline of events underscores the severity of the alleged misstatements:
- June 7, 2024: A revised start date referenced in some filings, marking an alternative benchmark for the class period.
- February 25–26, 2025: The stock collapse followed the delayed admission of Rytelo’s struggles.
- March 2025–May 2025: Faruqi & Faruqi issued multiple press releases to alert investors, emphasizing the May 12 deadline for lead plaintiff applications.

Investors with losses exceeding $100,000 during the relevant period are encouraged to contact the firm to discuss their eligibility. The lead plaintiff, selected based on financial stake and alignment with the class, will oversee litigation. However, all affected investors may benefit from any settlement or judgment, regardless of their role in the suit.

Legal and Investment Implications

The case highlights a recurring theme in pharmaceutical litigation: the tension between optimistic projections and clinical or market realities. Geron’s situation mirrors past cases where companies faced scrutiny for overstating drug prospects, such as in the Insys Therapeutics or Zogenix scandals.

For investors, the stakes are clear: the May 12 deadline is non-negotiable. Missing it could forfeit the right to participate in recovery efforts. Faruqi & Faruqi, with a track record of recovering hundreds of millions for investors since 1995, emphasizes the urgency of acting now. The firm’s focus on confidentiality and whistleblower outreach also suggests a broader investigation into internal Geron communications.

Conclusion: A Critical Moment for Geron Investors

The data paints a stark picture: GERN’s stock lost over 30% of its value in one day after the truth about Rytelo’s limitations came to light. With allegations of material misstatements and omissions, the class action seeks to hold Geron accountable for misleading investors.

The May 12 deadline is not merely procedural—it represents a lifeline for those who suffered significant losses. For context, the $100,000 threshold for individual claims is substantial but reflects the scale of losses incurred by institutional and retail investors alike. With Faruqi & Faruqi’s resources and the firm’s emphasis on confidentiality for whistleblowers, this case could set a precedent for how companies communicate risks in high-stakes drug launches.

Investors are advised to act promptly. Whether seeking lead plaintiff status or simply monitoring developments, the window to influence this outcome is closing. The stakes—both financial and reputational—are too high to ignore.

For more information, visit the case-specific website
www.faruqilaw.com/GERN or contact Faruqi & Faruqi directly.