Nesterenko v. Bolt Biotherapeutics, Inc.

Background

Oleg Nesterenko brought a proposed securities class action against Bolt Biotherapeutics, Inc. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act, 15 U.S.C. § 78j(b), and Securities and Exchange Commission Rule 10b-5, based on alleged materially false or misleading statements and omissions. The order addressed Gabe Galioto’s unopposed motion to be appointed lead plaintiff and to have Pomerantz LLP approved as lead counsel. Bolt and the other named defendants filed a statement of non-opposition.

Lead Plaintiff

The Private Securities Litigation Reform Act generally directs the court to appoint the class member most capable of adequately representing the proposed class. The statute presumes that the most adequate plaintiff is the person who timely responds to notice, has the largest financial interest, and satisfies the adequacy and typicality requirements of Federal Rule of Civil Procedure 23.

Galioto timely filed his motion, and no competing motion was filed. The court found that he had incurred approximately $57,723 in losses from purchasing 10,000 Bolt shares between February 5, 2021, and May 14, 2024, the alleged class period. Because no other person came forward with a larger financial stake, the court found that Galioto met that requirement.

For adequacy, the court considered whether Galioto and his counsel had conflicts with other class members and whether they would pursue the case vigorously. Based on Galioto’s filings and declaration, the court found that he had shown no conflict or antagonism and was committed to litigating the case. For typicality, the court found that his alleged injuries arose from the same conduct and legal theory as the proposed class’s claims. The court therefore appointed Galioto as class representative.

Lead Counsel

Galioto selected Pomerantz LLP as lead counsel. The court stated that it generally defers to a lead plaintiff’s reasonable choice of counsel and appointed Pomerantz LLP as lead counsel. Its listed responsibilities include preparing pleadings, handling motions, conducting discovery and depositions, negotiating settlement, preparing for and conducting trial, and supervising other matters concerning prosecution or resolution of the consolidated action.

Disposition and Next Steps

Judge Corley granted Galioto’s motion for appointment as lead plaintiff and approval of his selection of lead counsel. The court vacated the October 10, 2024 hearing. It also directed the parties to meet and confer within 20 calendar days after entry of the order and to submit a proposed schedule for an amended complaint and the defendants’ response by October 30, 2024. This order selected the lead plaintiff and lead counsel; it did not decide the underlying securities-fraud claims.