The litigation alleges that Capricor executives misled shareholders by failing to disclose critical changes to the statistical analysis plan for Deramiocel. According to the complaint, these modifications were implemented without FDA approval prior to the resubmission of the company's Biologics License Application. The lawsuit contends that this omission created a hidden risk that regulators would reject the drug’s efficacy, a prospect that directly threatened the company's core regulatory goals.
The market reacted sharply when these risks surfaced. On July 27, 2026, FDA briefing documents indicated that the benefit-risk assessment for the drug appeared unfavorable, triggering a 64% drop in Capricor's share price. The stock fell again on July 30, 2026, after an advisory committee voted 9-3 that the evidence did not support the drug’s efficacy for treating DMD-associated cardiomyopathy, resulting in a further 36% decline.





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