A shareholder of Geron Corporation (NASDAQ: GERN) has filed a derivative lawsuit against several current and former executives and board members, alleging they misled investors regarding the commercial viability of the company's cancer treatment drug, Rytelo.

The suit, filed by shareholder Edward Troy Bishop, targets current CEO Dawn Bir, former CEO John Scarlett, CFO Michelle Robertson, and other past executives and directors. The complaint accuses them of breaching fiduciary duties between February 28, 2024, and February 25, 2025, by overstating the market readiness and performance potential of Rytelo, despite being aware of significant obstacles.

Geron, a commercial-stage biopharmaceutical company, focuses on oncology treatments. In June 2024, the FDA approved Rytelo for use in adult patients with transfusion-dependent anemia associated with certain myelodysplastic syndromes. However, the lawsuit claims executives made false and misleading statements about the drug’s potential and failed to disclose critical issues including low physician awareness, market competition, seasonal sales fluctuations, and the burden of weekly patient monitoring.

On February 26, 2025, Geron reported flat revenue growth in its fourth-quarter and full-year earnings report, attributing the stagnation to the very factors that were allegedly concealed. The announcement led to a 32% drop in stock price—from $2.37 to $1.61 per share—prompting legal action from shareholders. As of Wednesday, Geron’s stock was trading at $1.24.

This is not the first legal challenge tied to Rytelo (imetelstat). In 2021, Geron faced similar claims over exaggerated clinical trial results, resulting in a settlement and the implementation of five-year corporate governance reforms.

The current suit, “Geron shareholder sues executives over drug launch,” seeks damages, attorney fees, and a jury trial.

Plaintiff’s counsel includes attorneys from Wolf Haldenstein Adler Freeman & Herz LLP, Rigrodsky Law PA, and Grabar Law Offices.

Geron Corporation and its legal representatives have not yet issued a comment regarding the suit.