Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
11/05/2021
Initial Lawsuit
11/05/2021
Lawsuit Progression
01/10/2022
Dismissal
01/31/2022
Plaintiff brings this securities class action on behalf of all persons or entities who purchased or otherwise acquired shares of each share class of the fund in continuous offerings pursuant to registration statements and prospectuses for the fund filed for a period commencing at the earliest date pursuant to the applicable three year statute of limitations, through the date of final judgment after trial. Share classes include the Investor Class (traded TWVLX), I Class (AVLIX), Y Class (AVUYX), A Class (TWADX), C Class (ACLCX), R Class (AVURX), R5 Class (AVUGX), and R6 Class (AVUDX).
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) The fund’s investment strategy was neither to identify companies whose stock price may not reflect the company’s value, nor to purchase the stocks of these undervalued companies and hold each stock until the price has increased to, or is higher than, a level the managers believe more accurately reflects the fair value of the company;
(ii) Defendants were not actively managing the Fund (which allegedly included researching and selecting investments for the Fund)
(iii) Defendants employed an investment strategy designed to closely track the performance of the fund’s stated benchmark index, the Russell 1000 Value index, known as “closet indexing”;
(iv) Defendants had no reason to charge a substantial fees to the Fund for this purportedly active management while engaging in closet indexing;
(v) The excessive fees virtually ensured that the fund could not match its benchmark over time, let alone outperform it, and;
(vi) As a result, the fund would consistently fail to meet or outperform its benchmark index.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.