SAN FRANCISCO, March 11, 2023 (GLOBE NEWSWIRE) — Hagens Berman calls on Fate Therapeutics, Inc. FATE Investors who have suffered significant losses Submit your losses now.

school lesson: April 2, 2020 – January 5, 2023
Deadline for lead plaintiff: March 22, 2023
Visit: https://www.hbsslaw.com/investor-fraud/FATE
Contact a lawyer now: FATE@hbsslaw.com
844-916-0895

Fate Therapeutics, Inc. (FATE) Securities Fraud Class Action:

The litigation focuses on Fate’s much-touted April 2020 collaboration agreement with Janssen Biotech, under which Janssen and Fate agreed to collaborate on the development of iPSC-derived CAR-NK and CAR-T cell product candidates for the treatment of cancer. Under this agreement, Fate received an upfront payment of $50 million and was eligible to receive up to $3 billion in various milestone payments and royalties.

According to the lawsuit, the defendants made materially misleading statements and failed to disclose the following: (1) the Janssen Agreement was less viable than Fate made out to investors; (2) accordingly, certain clinical programs, milestone payments and royalties related to the Agreement could not be used as future revenue streams; and (3) as a result, Fate has overstated the impact of the Janssen Agreement on Fate’s long-term clinical and commercial viability.

The truth came out on January 5, 2023 when Fate announced that it had terminated the Janssen Cooperation Agreement after Fate rejected Janssen’s proposal to continue the agreement on modified terms. The company also said that all collaborative activities with Janssen will cease in the first quarter of 2023 and that it will reduce its workforce from 545 (as of September 30, 2022) to approximately 220 in the first quarter of 2023.

The news prompted a spate of downgrades from analysts, sending Fate Therapeutics shares down over 60% in a single day.

“We are focused on investor losses and proving that Fate misled investors about the strength and prospects of its collaboration with Janssen,” said Reed Kathrein,…