aibioRocket Pharmaceuticals faces securities class action and derivative suit over Danon trial
Tickers RCKT
Ho and Yankov complaints named Rocket, CEO Gaurav Shah and former CFO Aaron Ondrey. Rocket's motion to dismiss the consolidated complaint is pending, and a derivative suit is stayed.
Key facts
- Company
- Rocket Pharmaceuticals, Inc. (NASDAQ: RCKT)
- News type
- Legal
- Primary source
- Rocket Pharmaceuticals 10-Q for the quarter ended June 30, 2026 (SEC EDGAR)
Rocket Pharmaceuticals, Inc. (Nasdaq: RCKT) is defending a consolidated securities class action in the U.S. District Court for the District of New Jersey over its statements about the Phase 2 trial of RP-A501 for Danon disease, according to its 10-Q filed Aug 10, 2026. The original complaints named Rocket and Gaurav Shah, and one also named Aaron Ondrey. The company has also disclosed a stayed derivative suit.
Two stockholders filed the class actions on June 11, 2025 and July 18, 2025. On Sept. 9, 2025 the court consolidated them, appointed two stockholders as co-lead plaintiffs and approved their choice of co-lead counsel. The consolidated case is captioned In re Rocket Pharmaceuticals, Inc. Securities Litigation, 3:25-cv-10049. A derivative action followed on Oct. 22, 2025 in the same court, naming certain officers and current or former directors as defendants and Rocket as a nominal defendant.
The case
The first complaint, Ho v. Rocket Pharmaceuticals, Inc., and Gaurav Shah (3:25-cv-10049), covered purchasers between Feb. 27, 2025 and May 26, 2025. The second, Yankov v. Rocket Pharmaceuticals, Inc., Gaurav Shah and Aaron Ondrey (3:25-cv-13532), covered Sept. 17, 2024 to May 26, 2025. Both allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5.
The consolidated amended complaint, filed Nov. 18, 2025, covers purchasers from Feb. 28, 2024 through Aug. 25, 2025. Plaintiffs allege that defendants failed to disclose serious adverse events in the Phase 2 trial and the introduction of a C3 inhibitor to the protocol, and that they lacked a viable trial design that could dose patients safely. They claim Rocket's stock price was inflated as a result. The actions seek unspecified damages, costs and attorneys' fees.
Defendants
The class action complaints named Rocket, Gaurav Shah, the chief executive officer, and Aaron Ondrey. The 10-Q does not say who is named in the consolidated complaint. Ondrey resigned as chief financial officer effective Sept. 5, 2025, and Martin Wilson became interim principal financial officer.
The 10-Q does not list the derivative defendants. Rocket's board when that suit was filed was the board that signed its 10-K for 2025 on Feb. 26, 2026, after the September 2025 changes reported in 8-Ks; Rocket filed no 8-K on a board change between Oct. 3, 2025 and that date. The directors were Shah, Elisabeth Björk, Carsten Boess, Mikael Dolsten, Peter Fong, Fady Malik, Piratip Pratumsuwan, David P. Southwell and Roderick Wong. No filing says which of them are defendants in the derivative suit.
Where it stands
Rocket filed a motion to dismiss on Jan. 30, 2026. Plaintiffs responded on April 1, 2026, and the defendants replied on May 15, 2026. The 10-Q reports no ruling on the motion. The derivative case is stayed until motions to dismiss the class action are resolved, under a stipulation the court approved on Dec. 22, 2025.
Rocket says it intends to vigorously defend both matters. It says the cases are in early stages and it cannot predict the outcome or estimate a range of potential loss, if any.
Why it matters to shareholders
The derivative complaint seeks damages for the company, governance reforms and restitution from the individual defendants. Its allegations cover Sept. 17, 2024 through May 26, 2025 and largely parallel the class actions, with added claims about internal controls and alleged insider trading. It also asks for declaratory relief and for an order directing the company and the individual defendants to institute corporate governance reforms.
Rocket says it will pay the legal fees related to the derivative action against its officers and directors. The 10-Q adds that, regardless of outcome, litigation can have an adverse impact on the company because of defense and settlement costs, diversion of management resources and other factors. The 10-Q says Rocket has indemnification obligations to its directors and officers, including obligations from lawsuits, and has insurance that reduces its monetary exposure and would let it recover a portion of any future amounts paid. It reports no accrual for these cases.