Veljanoski v. Juno Therapeutics, Inc. et al

Filing 110

ORDER granting Plaintiffs' 109 Motion for an Order Regarding Program and Notice to the Class signed by Judge Ricardo S Martinez. (PM)

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UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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No. C16-1069 RSM

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ORDER GRANTING PLAINTIFFS’
MOTION FOR AN ORDER
REGARDING PROGRAM AND
NOTICE

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In re JUNO THERAPEUTICS, INC.

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By Order dated October 24, 2017, this Court certified the following Class in this action:
ALL PURCHASERS OF THE COMMON STOCK OF JUNO
THERAPEUTICS, INC., DURING THE PERIOD FROM JUNE 4, 2016
AND NOVEMBER 22, 2016, BOTH DATES INCLUSIVE (THE “CLASS
PERIOD”).

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Excluded from the Class are: defendants, present or former officers and
directors of Juno Therapeutics, Inc., members of their immediate families
and their legal representatives, heirs, successors or assigns, and any entity
in which any current or former Defendants have or had a controlling
interest.

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The Court hereby establishes the following program and schedule for notice to the Class
of the pending class action:
1.

The Court approves the forms of individual Notice of Pendency of Class Action

and published Summary Notice, attached hereto as Exhibits A and B, respectively;
2.

Class Counsel shall cause to be mailed, by first class mail, the individual Notice

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ORDER REGARDING NOTICE
No. C16-1069 RSM

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L AW O FFICES OF

C LIFFORD A. C ANTOR , P.C.
627 208th Avenue SE 
Sammamish, Washington 98074‐7033 
Tel: (425) 868‐7813  •  Fax: (425) 732‐3752

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of Pendency of Class Action to all members who can be identified through reasonable effort;
3.

Class Counsel may employ A.B. Data, Ltd. as Notice Administrator, to assist in

the providing of class notice;
4.

Class Counsel shall cause the published Summary Notice to be disseminated via

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Business Wire on the tenth business day after the mailing of the individual Notice of Pendency

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of Class Action;

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5.

Class Counsel will direct the Notice Administrator, A.B. Data, Ltd., to notify

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Defendants’ counsel of record, in writing, of the requests for exclusion it has received, including

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the name and address of the person or entity, the number of share purchases and, if sold, the date

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those purchased shares were sold. The Notice Administrator will transmit this information to

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Defendants’ counsel by first class mail to be postmarked no later than thirty (30) days after the

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deadline for exclusion.

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6.

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the Defendants.

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The costs of the notice shall be borne by Plaintiffs and Class Counsel and not by

Dated this 22nd day of December 2017.

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A

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RICARDO S. MARTINEZ
CHIEF UNITED STATES DISTRICT JUDGE

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Presented by:
s/ Cliff Cantor
By: Cliff Cantor, WSBA # 17893
LAW OFFICES OF CLIFFORD A. CANTOR, P.C.
627 208th Ave. SE
Sammamish, WA 98074
Tel: [phone]
Fax: [phone]
email: [e-mail]
ORDER REGARDING NOTICE
No. C16-1069 RSM

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L AW O FFICES OF

C LIFFORD A. C ANTOR , P.C.
627 208th Avenue SE 
Sammamish, Washington 98074‐7033 
Tel: (425) 868‐7813  •  Fax: (425) 732‐3752

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Plaintiffs’ Liaison Counsel
POMERANTZ LLP
Omar Jafri
Patrick V. Dahlstrom
Leigh H. Smollar
Ten South La Salle Street, Suite 3505
Chicago, Illinois 60603
Tel: [phone]
Fax: [phone]
email: [e-mail]
[e-mail]
[e-mail]
POMERANTZ LLP
Jeremy A. Lieberman
J. Alexander Hood II
600 Third Avenue, 20th Floor
New York, New York 10016
Tel: [phone]
Fax: [phone]
email: [e-mail]
[e-mail]
Plaintiffs’ Lead Counsel

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ORDER REGARDING NOTICE
No. C16-1069 RSM

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L AW O FFICES OF

C LIFFORD A. C ANTOR , P.C.
627 208th Avenue SE 
Sammamish, Washington 98074‐7033 
Tel: (425) 868‐7813  •  Fax: (425) 732‐3752

Exhibit A

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THE HONORABLE RICARDO S. MARTINEZ

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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In re JUNO THERAPEUTICS, INC.

Case No. C16-1069 RSM

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NOTICE OF PENDENCY OF CLASS ACTION

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PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS
MAY BE AFFECTED BY PROCEEDINGS IN THIS ACTION.
TO:

ALL PURCHASERS OF THE COMMON STOCK OF JUNO THERAPEUTICS,
INC., DURING THE PERIOD FROM JUNE 4, 2016 AND NOVEMBER 22, 2016,
BOTH DATES INCLUSIVE (THE “CLASS PERIOD”).

Excluded from the Class are defendants, present or former officers and directors of Juno
Therapeutics, Inc., members of their immediate families and their legal representatives,
heirs, successors or assigns, and any entity in which any current or former Defendant has or
had a controlling interest.
PLEASE NOTE: THIS CASE HAS NOT BEEN SETTLED. THIS NOTICE IS INTENDED
ONLY TO INFORM YOU THAT A CLASS ACTION IS CURRENTLY IN PROGRESS.
THERE IS NO CLAIM FORM TO BE MAILED.
This Notice is issued pursuant to Rule 23 of the Federal Rules of Civil Procedure and an
Order of the United States District Court for the Western District of Washington (the “Court”),
entered October 24, 2017, certifying the above action as a Class Action. The purpose of this Notice
is to inform you of: (a) the pendency of the captioned class action before the Honorable Ricardo
S. Martinez, in the United States District Court for the Western District of Washington (the
“Action”); (b) the certification of the Class defined above, of which you may be a member (“Class
Member”); and (c) your right to exclude yourself from (or “opt out” of) the Class. This Action
has not been settled and continues to be litigated. Accordingly, there is no claim form to submit
at this time.

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If you purchased shares of Juno Therapeutics Inc. common stock during the period June 4,
2016 through November 22, 2016, both dates inclusive, you may be a member of the Class. As a
Class Member, you will be bound by the result of any trial of the Action, any judgment entered by
L AW O FFICES OF

NOTICE OF PENDENCY OF CLASS ACTION
NO. C16-1069 RSM

C LIFFORD A. C ANTOR , P.C.

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627 208th Avenue SE
Sammamish, Washington 98074-7033
Tel: [phone] • Fax: [phone]

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the Court, and any determination made by the Court, unless you timely mail a request for exclusion,
as described below, postmarked no later than March 19, 2018.

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DESCRIPTION OF THE ACTION

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Summary of the Action
The Class Representatives in this action are Gilbert Hoang Nguyen and Susan Tan. The
Court has appointed them to represent the Class.

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The Defendants in this action are Juno Therapeutics, Inc. (“Juno” or the “Company”) and
certain of Juno’s officers and directors: Hans E. Bishop, Steven D. Harr, and Mark J. Gilbert,
(the “Individual Defendants” and collectively with Juno, the “Defendants”).
The Amended Complaint (“Complaint”) alleges that, during the Class Period, Defendants
made false and/or misleading statements and/or failed to disclose material facts about JCAR015,
an immunotherapy candidate developed by the Company to treat a rare form of blood cancer
known as Acute Lymphoblastic Leukemia. During the Class Period, and pursuant to Food and
Drug Administration (“FDA”) regulations, JCAR015 was being studied in various clinical trials
to assess its efficacy and safety, so that the FDA could determine whether to approve the therapy
for use in the United States.
Specifically, the Complaint alleges that Defendants did not timely disclose a patient death
that occurred in May 2016 in the JCAR015 Phase II clinical trial, simultaneously reported positive,
preliminary results from the Phase I trial and represented to investors that the results from the
Phase I trial could be used as a potential measure of JCAR015’s success. The Complaint alleges
that on July 7, 2016, Defendants disclosed that two additional patients in the Phase II trial had died
from cerebral edema and that the FDA had placed the trial on a clinical hold. The Complaint
alleges that on this news, Juno’s stock price declined by more than 30%.
The Complaint alleges that Defendants misled investors by stating that the use of
fludarabine (“flu”) in combination with JCAR015 was the most likely cause of the patient deaths,
but withheld material information that undermined this conclusion. On July 12, 2016, the
Company announced that the FDA had lifted the clinical hold after the Company represented that
it would no longer use flu as part of the preconditioning regimen. On this news, the Complaint
alleges that Juno’s stock price rose by 9.4%.

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The Complaint alleges that on November 23, 2016, Defendants disclosed that the Company
had voluntarily placed the JCAR015 Phase II trial on hold because two additional patients died
from cerebral edema despite the removal of flu as part of the overall treatment regimen. On this
news, the Complaint alleges that Juno’s stock price declined by 25%. Plaintiffs also allege that
certain Individual Defendants traded Company stock during the period of the alleged inflation.
The Defendants have denied and continue to deny all claims and wrongdoing asserted in
L AW O FFICES OF

NOTICE OF PENDENCY OF CLASS ACTION
NO. C16-1069 RSM

C LIFFORD A. C ANTOR , P.C.

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627 208th Avenue SE
Sammamish, Washington 98074-7033
Tel: [phone] • Fax: [phone]

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the Complaint and any liability arising out of the allegations of misconduct in the Complaint.
No trial has yet occurred in this Action and no findings of fault or liability have been made
as to any of the parties.

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Prosecution of the Action
This action was commenced on July 12, 2016. On October 19, 2016, the Court appointed
Gilbert Hoang Nguyen as Lead Plaintiff. Lead Plaintiff filed an Amended Complaint on December
12, 2016. In response, Defendants moved to dismiss Lead Plaintiff’s claims. The Court denied
Defendants’ Motion to Dismiss on June 14, 2017.
On July 21, 2017, Defendants filed their Answer to the Amended Complaint, denying all
claims and wrongdoing asserted, as well as any liability arising out of the conduct alleged in the
Amended Complaint. The Defendants also asserted several affirmative defenses to the claims
made in the Amended Complaint.
By order dated October 24, 2017, the Court certified the Class, as defined above, appointed
Gilbert Hoang Nguyen and Susan Tan as the Class Representatives and Pomerantz LLP as Class
Counsel. Certification of the Class means that the action is legally recognized as a Class Action
pursuant to Rule 23 of the Federal Rules of Civil Procedure.
Discovery is ongoing. The discovery cutoff in this case is March 18, 2019. The Court has
set the deadline for filing dispositive motions at April 16, 2019. If the Court denies any such
motions that may be filed, a trial is scheduled in this Action for July 15, 2019.

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This Notice is being sent to notify you that you may be a member of the Class whose rights
could be affected by this Action. It is not an expression of any opinion by the Court concerning
the merits of the Action. There is no assurance that a judgment in favor of the Class will be granted
or that the Court will award the Class a monetary recovery. This Notice is intended to advise you
of the pendency of the Action and of your rights with respect to the Action, including the right
either to remain a Class Member or to exclude yourself from the Class.

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INSTRUCTIONS TO CLASS MEMBERS

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If you fit the description of a Class Member, you have a choice whether to remain a member
of the Class in this Action.

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If you wish to remain a Class Member, you are not required to do anything at this time. If
you do nothing, you will remain a Class Member and will be bound by the result of any trial,
judgment, and determination of the Court, whether favorable or unfavorable to Plaintiffs. If you
choose to remain in the Class, you will not be able to pursue a lawsuit on your own with regard to
any of the issues that were or could have been decided in this Action. If you remain in the Class,
you are not personally responsible for any expenses or attorneys’ fees. If there is a recovery, you
L AW O FFICES OF

NOTICE OF PENDENCY OF CLASS ACTION
NO. C16-1069 RSM

C LIFFORD A. C ANTOR , P.C.

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627 208th Avenue SE
Sammamish, Washington 98074-7033
Tel: [phone] • Fax: [phone]

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may be entitled to share in the proceeds, less costs, expenses, plaintiff reimbursement award and
attorneys’ fees as the Court may allow out of any recovery.

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There is no settlement or judgment in the case at this time. In the event of recovery, you
will be able to share in a recovery in this case only if you are a member of the Class—i.e., you do
not exclude yourself—and only if you did not sell your Juno stock prior to July 7, 2016.
The Class is represented by:

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If you desire to be excluded from the Class, you must state so in writing. Your request for
exclusion must state: your desire to be excluded from the Class, the name and address of the
person or entity requesting exclusion, that such person or entity requests exclusion from the Class
in this Action, the number of Juno shares purchased and the date the Juno shares were purchased,
and must be signed by that person or entity requesting exclusion from the Class. Requests for
exclusion must be transmitted by first class mail or overnight delivery service to the following
address:

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Juno Therapeutics Securities Litigation
ATTN: EXCLUSIONS,
c/o A.B. Data, Ltd.
P.O. Box 173001
Milwaukee, WI 53217

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Patrick V. Dahlstrom, Esq.
Leigh H Smollar, Esq.
Omar Jafri, Esq.
Pomerantz LLP
Ten South La Salle Street, Suite 3505
Chicago, Illinois 60603
Telephone: [phone]

To be effective, your Request for exclusion must be postmarked no later than March 19,
2018.

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If you wish to participate in this Action, do not request exclusion. If you exclude yourself
from the Class, you will not be bound by any judgment or decision by the Court in this Action,
but you will also not be entitled to share in the benefits of any judgment favorable to the Class or
from any Court-approved settlement on behalf of the Class. If you request exclusion, you would
be entitled to pursue any individual remedy which you may have, but only at your own expense
and through your own counsel.

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Your Right to Appear

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If you do not request exclusion from the Class in the manner set forth above, you may, if
you so desire, enter an appearance through an attorney of your own choice. If you wish, you may

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L AW O FFICES OF

NOTICE OF PENDENCY OF CLASS ACTION
NO. C16-1069 RSM

C LIFFORD A. C ANTOR , P.C.

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627 208th Avenue SE
Sammamish, Washington 98074-7033
Tel: [phone] • Fax: [phone]

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also consult with your own counsel concerning your rights in this action.
If you do not timely request exclusion from the Class postmarked by March 19, 2018, you
will be considered a Class Member, and you will be bound by any judgment in this Action and
will not be able to pursue any individual remedy which you may have.
NOTICE TO BANKS, BROKERS, AND OTHER NOMINEES
If you held any Juno common stock, purchased during the Class Period as nominee for a
beneficial owner, then, within ten (10) days after you receive this Notice, you must either: (1)
provide a list of the names and addresses of such beneficial owners to the Claims Administrator,
preferably in an MS Excel data table setting forth: (a) title/registration, (b) street address, (c)
city/state/zip; on electronic mailing labels in MS Word file (label size Avery #5162), or printed
out on physical mailing labels; or (2) send copies of this Notice and Proof of Claim by first class
mail to all such beneficial owners, providing written confirmation to the Claims Administrator of
having done so.
If you choose to mail the Notice yourself, you may obtain (without cost to you) as many
additional copies of these documents as you will need to complete the mailing by either
downloading a copy from the Claims Administrator’s website, or by contacting the Claims
Administrator at:
Juno Therapeutics Securities Litigation
c/o A.B. Data, Ltd.
P.O. Box 170500
Milwaukee, WI 53217
[e-mail]
www.junotherapeuticslitigation.com
888-xxx-xxxx

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Whether you choose to complete the mailing yourself or elect to have the mailing
performed for you, you may obtain reimbursement for reasonable administrative costs of
complying with this provision, upon submission of appropriate documentation to the Claims
Administrator.

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EXAMINATION OF PAPERS AND INQUIRIES

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For further information about the Action, you may contact Lead Counsel at the addresses
listed above or consult the pleadings and other papers filed in the Action at the Office of the Clerk
of the United States District Court for the Western District of Washington, 700 Stewart Street, Suite
2310, Seattle, WA 98101, during normal business hours of each business day. If you have an
account with PACER, you may consult the pleadings and other papers via Electronic Case Filing
at the website of the Western District of Washington, https://ecf.wawd.uscourts.gov/cgibin/ShowIndex.pl.

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L AW O FFICES OF

NOTICE OF PENDENCY OF CLASS ACTION
NO. C16-1069 RSM

C LIFFORD A. C ANTOR , P.C.

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627 208th Avenue SE
Sammamish, Washington 98074-7033
Tel: [phone] • Fax: [phone]

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If you have any questions concerning this case or your membership in the Class please
contact:
Juno Therapeutics Securities Litigation
c/o A.B. Data, Ltd.
P.O. Box 170500
Milwaukee, WI 53217
[e-mail]
www.junotherapeuticslitigation.com
888-xxx-xxxx
INQUIRIES SHOULD NOT BE DIRECTED TO THE COURT, THE
CLERK’S OFFICE, THE DEFENDANTS, OR DEFENDANTS’ COUNSEL.

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Dated: December 21, 2017
By Order of the Court
United States District Court
Western District of Washington

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L AW O FFICES OF

NOTICE OF PENDENCY OF CLASS ACTION
NO. C16-1069 RSM

C LIFFORD A. C ANTOR , P.C.

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627 208th Avenue SE
Sammamish, Washington 98074-7033
Tel: [phone] • Fax: [phone]

Exhibit B

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THE HONORABLE RICARDO S. MARTINEZ

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UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF WASHINGTON
AT SEATTLE

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Case No. C16-1069 RSM

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In re JUNO THERAPEUTICS, INC.

SUMMARY NOTICE OF PENDENCY OF
CLASS ACTION

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PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS
MAY BE AFFECTED BY PROCEEDINGS IN THIS ACTION.
TO:

ALL PURCHASERS OF THE COMMON STOCK OF JUNO THERAPEUTICS,
INC., DURING JUNE 4, 2016 THROUGH NOVEMBER 22, 2016, BOTH DATES
INCLUSIVE (THE “CLASS PERIOD”).

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Excluded from the Class are defendants, present or former officers and directors of Juno
Therapeutics, Inc., members of their immediate families and their legal representatives,
heirs, successors or assigns, and any entity in which any current or former Defendant has or
had a controlling interest.
This Notice is issued pursuant to Rule 23 of the Federal Rules of Civil Procedure and an
Order of the United States District Court for the Western District of Washington (the “Court”),
entered October 24, 2017, certifying the above action as a Class Action. This Action has not been
settled and continues to be litigated. You need not submit a claim form at this time.
If you are a member of the Class, your rights are affected by this Action and you may have
the right to participate in the recovery. You also have the right to exclude yourself from the Class.
Instructions for excluding yourself are given in a more detailed Notice of Pendency of Class
Action, which was mailed separately to persons and entities identified from the records of
Defendant Juno Therapeutics, Inc. as members of the Class. That Notice of Pendency of Class
Action describes the Class Action and your rights with respect thereto.
If you have not received the more detailed Notice by mail, please contact in writing: Juno
Therapeutics Securities Litigation, c/o A.B. Data, Ltd., P.O. Box 170500, Milwaukee, WI 53217,
or by email to: [e-mail], www.junotherapeuticslitigation.com.

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Inquiries other than requests for Notice may be made to Class Counsel: Omar Jafri,
Pomerantz LLP, Ten S LaSalle St, Ste 3505, Chicago IL 60603, Tel [phone],
SUMMARY NOTICE OF PENDENCY OF
CLASS ACTION
NO. C16-1069 RSM

L AW O FFICES OF

C LIFFORD A. C ANTOR , P.C.

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627 208th Avenue SE
Sammamish, Washington 98074-7033
Tel: [phone] • Fax: [phone]

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[e-mail].
INQUIRIES SHOULD NOT BE DIRECTED TO THE COURT, THE
CLERK’S OFFICE, THE DEFENDANTS, OR DEFENDANTS’ COUNSEL.
Dated: December 21, 2017
By Order of the Court
United States District Court
Western District of Washington

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SUMMARY NOTICE OF PENDENCY OF
CLASS ACTION
NO. C16-1069 RSM

L AW O FFICES OF

C LIFFORD A. C ANTOR , P.C.

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627 208th Avenue SE
Sammamish, Washington 98074-7033
Tel: [phone] • Fax: [phone]