Because if he doesn't, here is what can happen especially that he told some investors he is not taking it privatly, because he hasn't communicating anything to shareholders on their news release of share buyback:
Press Release Source: Bernstein Liebhard LLP On Wednesday December 22, 2010, 10:57 am EST
NEW YORK--(BUSINESS WIRE)-- Bernstein Liebhard LLP today announced that an action has been filed in the United States District Court for the Northern District of California on behalf of purchasers (the “Class”) of Geron Corporation (“Geron” or the “Company”) (NASDAQ:GERN - News) common stock during the period July 31, 2010 and December 6, 2010, inclusive (the “Class Period”). The complaint alleges violations of the Securities Exchange Act of 1934 against Geron and Geron Chief Financial Officer David Greenwood.
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.
Plaintiff seeks to recover damages on behalf of all Class members who purchased or otherwise acquired shares of Geron during the Class Period. If you purchased or otherwise acquired Geron shares during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than February 21, 2011.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action
