Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
12/02/2021
Initial Lawsuit
12/02/2021
Lawsuit Progression
04/13/2022
Plaintiff brings this federal securities class action on behalf of a class consisting of all persons and entities other than defendants that purchased or otherwise acquired:
(a) Alfi common stock or warrants pursuant and/or traceable to the offering documents issued in connection with the company’s initial public offering (IPO) conducted on or about May 4, 2021 ; and/or
(b) Alfi securities between May 4, 2021 and November 15, 2021, both dates inclusive.
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:
(i) Alfi maintained deficient disclosure controls and procedures and internal control over financial reporting;
(ii) as a result, the company and its employees could and did engage in corporate transactions and other matters without sufficient and appropriate consultation with or approval by the company’s Board of Directors;
(iii) all the foregoing increased the risk of internal and regulatory investigations into the company and its employees;
(iv) all the foregoing, once revealed, was likely to have a material negative impact on the company’s reputation, financial condition, and ability to timely file periodic reports with the SEC; and
(v) as a result, the company’s public statements were materially false and misleading at all relevant times.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.