Zerbato v. AlloVir, Inc. et al. Securities Litigation
Bernstein Liebhard announces a $1 million settlement of the securities fraud class action entitled Zerbato v. AlloVir, Inc., No. 1:24-cv-10152-DJC (D. Mass). On April 23, 2025, the Court granted preliminary approval of the settlement. If you purchased AlloVir, Inc. (“AlloVir”) securities during the Class Period (January 11, 2023 through December 21, 2023), information about how to submit a claim, the Settlement, and Settlement Class Members’ rights can be found at the website www.strategicclaims.net/allovir/.
Bernstein Liebhard serves as Lead Counsel on behalf of the Lead Plaintiffs, Julio Maurice Bueno and Harry Levin, and the putative class. Lead Plaintiffs filed an Amended Complaint on June 17, 2024 alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”), and Rule 10b-5 promulgated thereunder, against AlloVir, Diana M. Brainard and Vikas Sinha. The amended complaint alleged that AlloVir violated the federal securities laws by inter alia, repeatedly touting positive Phase 2 results for posoleucel (the Company’s lead product prospect) and stating that the Phase 3 Trials were ongoing, all while knowing that the Phase 2 results were rendered meaningless by the Company’s trilogy of failures in the Phase 3 Trials. As a result, there was no viable path to commercialize posoleucel based on the results from the Trials.
On August 16, 2024, the Defendants filed a motion to dismiss the amended complaint. The motion to dismiss was fully briefed at the time the parties agreed to the settlement.
On March 3, 2025, the Parties agreed to a settlement in principle to release all claims against Defendants in return for a cash payment of one million dollars ($1,000,000) for the benefit of the Settlement Class.
Full copies of the settlement documents, including the and Proof of Claim and Release Form are available by clicking the links above or at www.strategicclaims.net/allovir/.
