According to the Complaint, Mesoblast Limited develops allogeneic cellular medicines using its proprietary mesenchymal lineage cell therapy platform. Its lead product candidate, RYONCIL (remestemcelL), is an investigational therapy comprising mesenchymal stem cells derived from bone marrow.

The Complaint alleges that that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that comparative analyses between Mesoblast’s Phase 3 trial and three historical studies did not support the effectiveness of remestemcel-L for steroid refractory aGVHD due to design differences between the four studies; (2) that, as a result, the FDA was reasonably likely to require further clinical studies; (3) that, as a result, the commercialization of remestemcel-L in the U.S. was likely to be delayed; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On December 23, 2020, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 20-CV-08430. Lead Plaintiff filed an amended Complaint on August 17, 2021.

The parties notified the Court that they had reached a settlement in principle on February 9, 2022. On March 28, the parties entered into a Stipulation and Agreement of Settlement. The Court granted preliminary approval of the Settlement on April 8. On August 15, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On February 15, 2023, the Court granted Plaintiffs' Motion for Distribution of Settlement funds.