According to a press release dated December 22, 2010, During the Class Period, Greenwood made several misstatements concerning Geron’s funding. Defendant Greenwood twice stated that Geron was funded for the “near-term,” trumpeting the amount of cash the Company had on hand, which he put at $156 million at the end of July, 2010 and $146 million at the end of October, 2010. Significantly, Defendant Greenwood stated that Geron had a “running net burn number” of $48 million annualized in October, 2010, and $48 to $50 million annualized in July, 2010. Accordingly, the Company should have been funded for 3 years.
Yet, in an about-face, only 5 weeks after Greenwood’s October 2010 statement, on December 6, 2010, after the market closed, Defendants announced an $87 million secondary public offering (the “Offering”) – which, with the underwriters over-allotment became a $93 million offering. On December 7, 2010, Defendants announced the pricing of the Offering – at $5.00 per share, when Geron shares were trading at $6.12 per share on December 6, 2010. After the December 6, 2010 after-market disclosure and the December 7, 2010 statement, Geron stock fell almost 20% in heavy trading, from a December 6, 2010 close of $6.12 to a December 7, 2010 close of $5.
According to the Company's FORM 10-K for the Fiscal Year Ended December 31, 2010, the case was voluntarily dismissed, without prejudice, on February 14, 2011, which dismissal was so ordered by the Court on February 15, 2011.