Sana Biotechnology Lawsuit Deadline Looms: Investors Face Critical Decision by May 20, 2025

The ongoing securities class-action lawsuit against Sana Biotechnology, Inc. (NASDAQ: SANA) has reached a pivotal stage, with shareholders now facing a hard deadline to assert their rights. The Gross Law Firm, lead counsel in the case, has set May 20, 2025, as the cutoff for investors who purchased SANA shares between March 17, 2023, and November 4, 2024, to seek designation as lead plaintiff. This article examines the legal and financial stakes for investors, the allegations at the heart of the case, and the implications of the looming deadline.

The Case Against Sana Biotechnology

The lawsuit alleges that Sana, a clinical-stage biotech firm focused on gene and cell therapies, misled investors by overstating the progress and financial viability of its experimental treatments. Key claims include:
1. False Financial Assurances: Sana allegedly downplayed its financial risks, including insufficient funds to sustain operations and advance its pipeline.
2. Overhyped Product Candidates: Three therapies—SC291 (oncology), SC379, and SG299 (fusogen platform)—were portrayed as more promising than internal data supported.
3. Misleading Operations: The company allegedly concealed plans to cut funding for these programs, reduce staff, and prioritize fewer candidates, thereby overstating its operational stability.

The complaint argues that these misrepresentations artificially inflated Sana’s stock price, only to collapse when the truth emerged. A critical turning point came in October 2023, when Sana announced it was scaling back SG299 development and cutting 29% of its workforce. This led to an immediate 8.95% stock drop. A second blow came in November 2024, when Sana suspended SC291 and SC379 trials, causing a further 9.84% decline.

The Legal Landscape: Certification and Settlement Talks

The case has advanced through U.S. courts, though certification remains unresolved. In late 2024, the court granted partial class certification for investors who bought shares during a narrower timeframe, acknowledging common issues like misstatements and reliance on Sana’s disclosures. However, Sana has vigorously contested the case, denying wrongdoing and asserting its disclosures were “accurate and compliant with regulatory standards.”

Settlement discussions began in early 2025, with plaintiffs seeking monetary compensation and corporate governance reforms. Sana, however, reportedly aims for a narrower settlement or dismissal. As of mid-2025, negotiations continue, with the possibility of a trial later this year.

Why the May 20 Deadline Matters

Shareholders who purchased SANA shares during the class period face two critical choices:
1. Seek Lead Plaintiff Status: By May 20, investors can apply to represent the class, which involves demonstrating significant losses and the ability to fairly represent others.
2. Register for the Class Action: Even without lead plaintiff status, shareholders can recover losses by registering via the Gross Law Firm’s submission portal.

The stakes are high. Sana’s stock has plummeted from over $80 in early 2023 to below $20 by late 2024, erasing billions in investor value. For those holding shares during the class period, the lawsuit represents a potential path to recoup losses—if the case succeeds.

Conclusion: A Crossroads for Sana Investors

The May 20 deadline is a make-or-break moment for Sana shareholders. With the stock’s value down over 75% since the lawsuit’s inception, the case underscores the risks of investing in high-risk biotech firms where clinical trial outcomes and financial transparency are pivotal.

Key data points reinforce the urgency:
- Stock Performance: SANA’s price has fallen from $85.42 (Jan 2023 high) to $18.75 (as of Q2 2025), a 78% decline.
- Legal Momentum: Partial certification suggests courts see merit in the plaintiffs’ claims, but a final ruling or settlement hinges on the lead plaintiff’s actions.

Investors holding SANA shares during the class period should act swiftly. Failing to meet the deadline risks forfeiting participation in any recovery. While Sana insists it acted properly, the market has already voted with its feet—and the legal system may yet amplify that verdict.

For now, the clock is ticking.