Kyverna Therapeutics, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Kyverna Therapeutics, Inc. (KYTX)

If you purchased or acquired Kyverna Therapeutics securities prior to February 2024, and still hold some shares today, you may be eligible to join this securities investigation and seek compensation.

About Kyverna Therapeutics

Kyverna Therapeutics is a Delaware-incorporated, Emeryville, California-based, clinical-stage biopharmaceutical company focused on developing cell therapies for autoimmune diseases.

Its principal business involves CD19 CAR-T cell therapies, with its lead program, KYV-101, being evaluated in lupus nephritis (LN) through the KYSA-1 and KYSA-3 clinical trials.

What's being investigated

According to a class action complaint filed on December 9, 2024, plaintiffs allege that Kyverna possessed adverse clinical trial data before the initial public offering (IPO) but failed to disclose it in the offering documents, allegedly rendering statements about clinical results and risk factors misleading.

The complaint further alleges that Kyverna’s risk disclosures did not adequately describe the danger of withholding material clinical data and that the company’s public statements about KYV-101’s safety and efficacy were materially misleading at the time of the IPO. When the market learned of the alleged omissions, investors contend they suffered losses.

This investigation also explores whether Kyverna’s board of directors failed to uphold their fiduciary duties by not monitoring or disclosing critical clinical-trial information. Shareholders are reviewing whether board members with venture-capital or financial affiliations had conflicts of interest that could have influenced the completeness or timing of disclosures surrounding the IPO.

Key timeline

• February 8, 2024: Kyverna prices its IPO at $22 per share. Investors allege that offering documents omitted adverse clinical trial data.
• February 12, 2024: IPO closes and shares begin trading on NASDAQ under KYTX.
• June 14, 2024: Kyverna furnishes an investor presentation with updated KYV-101 clinical data at the EULAR symposium in Vienna.
• November 14, 2024: Company issues press release highlighting new patient data and safety results for KYV-101.
• December 9, 2024: Securities class-action complaint filed alleging nondisclosure of adverse clinical data before the IPO.

Why investors may be concerned

If the board knew or should have known about adverse KYV-101 data before the IPO and failed to ensure disclosure, directors could face derivative liability for breaches of loyalty or good faith.

Stockholders argue that these lapses reflect systemic governance weaknesses, including inadequate oversight of clinical-development reporting pipelines and potential conflicts between fiduciary obligations and personal financial incentives.

By the time the class-action complaint was filed, Kyverna’s stock had declined more than 80% from its $22 IPO price, trading as low as $3.92 per share; a drop that intensified investor concern about transparency and board oversight. The complaint’s allegations now serve as the basis for evaluating whether internal controls, compliance monitoring, and board risk-oversight processes at Kyverna were sufficient.

Your Rights and Next Steps

This is an ongoing investigation into potential breaches of fiduciary duty and disclosure-control failures at Kyverna Therapeutics. If you are a current or former shareholder who purchased or held Kyverna stock traceable to the February 2024 IPO and suffered losses, you may have certain rights.

Potential next steps:

• Request corporate books and records under Delaware Section 220 to investigate potential wrongdoing
• Pursue a derivative action seeking governance reforms or monetary recovery to the company
• Assist investigators by providing information or documentation relevant to board oversight and disclosures

Shareholders in derivative actions must generally show they owned shares at the time of the alleged misconduct and continuously through any judgment. If the board is unable or unwilling to act, courts may allow shareholders to proceed on the company’s behalf. Derivative actions may result in monetary recovery for the company, governance changes, or both.

How Shareholders Can Protect Their Rights

Securities investigations are time-sensitive. If you have held Kyverna Therapeutics (KYTX) stock since at least February 2024, you may be able to seek corporate reforms, the return of funds to Kyverna, and a court-approved incentive award for you; all at absolutely no cost.

To protect your rights, complete the form below to join the Kyverna Therapeutics investigation.