Sana Biotechnology’s Securities Lawsuit: Act Now to Secure Recovery Before May 20 Deadline

The clock is ticking for investors who lost money in Sana Biotechnology (NASDAQ:SANA) due to alleged financial misstatements and exaggerated claims about its product pipelines. With a May 20, 2025 deadline looming for shareholders to seek lead plaintiff status in a class action lawsuit, the window to recover losses is rapidly closing. This article explains why acting swiftly is critical to mitigate risk and secure compensation—and why waiting could mean forfeiting your rights.

The Case Against Sana: Fraudulent Claims Undermine Investor Trust

The lawsuit, filed on behalf of investors who purchased Sana shares between March 17, 2023, and November 4, 2024, accuses the company of misleading the public about its financial health and the scientific viability of its core therapies. Key allegations include:

1. Overstated Cash Reserves: Sana allegedly concealed its precarious cash position, which later forced drastic cost-cutting measures, including scaling back manufacturing and workforce reductions.
2. Product Pipeline Deception: Three high-profile therapies—SC291 (oncology), SC379 (CNS disorders), and SG299 (hematologic malignancies)—were promoted as breakthroughs, but the company failed to disclose plans to deprioritize or discontinue these programs due to funding constraints.
3. False Financial Promises: Executives allegedly claimed Sana had sufficient capital to advance its entire pipeline, when in reality, the firm was racing to secure financing to avoid collapse.

When these truths emerged in late 2024, Sana’s stock plummeted, triggering the lawsuit.

This chart illustrates the sharp decline in Sana’s stock value following the revelation of its financial mismanagement—a stark indicator of the harm caused by the alleged fraud.

Why the May 20 Deadline Matters: Timing is Everything

The May 20, 2025, deadline marks the final day for investors to file motions to serve as lead plaintiff. Lead plaintiffs play a pivotal role in steering the litigation, including negotiating settlements and selecting legal strategies. While you don’t need lead plaintiff status to recover losses, failing to act by this date means losing the opportunity to influence the case.

Risk Mitigation Strategies for Investors:
- Act Immediately: Submit claims via law firms like Levi & Korsinsky or Rosen Law Firm to secure your place in the case.
- Verify Eligibility: Confirm your purchase dates fall within the class period (March 17, 2023 – November 4, 2024).
- Leverage Expertise: Firms like Levi & Korsinsky, with a 20-year track record recovering hundreds of millions for shareholders, operate on contingency—meaning no upfront fees.

The Financial Reality: Sana’s Cash Flow Crisis and Pipeline Risks

SEC filings reveal Sana’s cash reserves have dwindled from $251.6 million in mid-2024 to $104.7 million by Q1 2025, with a quarterly burn rate of $47.8 million. Despite progress in trials for SC291 (B-cell depletion data in autoimmune diseases) and SG299 (preclinical success in primates), the company’s ability to fund late-stage development is in doubt.

Levi & Korsinsky: A Proven Partner for Recovery

Choosing the right legal team is critical. Levi & Korsinsky’s expertise in securities litigation—including their over 70 attorneys and $500+ million in settlements—positions them to aggressively pursue accountability. Their contingency fee model ensures investors pay nothing unless they win.

Final Warning: Don’t Miss the Window

The stakes are clear: Sana’s alleged fraud has already cost investors billions. By May 20, 2025, the court will finalize lead plaintiff selection. Waiting risks losing your chance to influence the case—and your shot at recovery.

Take Action Now:
- Contact Levi & Korsinsky: Visit
https://zlk.com/sana-biotechnology or call 212-363-7500.
- Submit Claims: Use online portals or email jlevi@levikorsinsky.com with transaction details.

The clock is ticking. For every day you delay, the door to recovery narrows. Act before May 20—and reclaim what was taken.

Final Note: This is not an endorsement of litigation outcomes but a call to protect your rights. Consult a legal expert to assess your case.