Athira Pharma, Inc.

Investigation
06/25/2021

Initial Lawsuit
06/25/2021

Lawsuit Progression
10/05/2021

Investigation

Continous Holding
September 18, 2020 to June 17, 2021
Proposed Claim
Securities Violation

Investigation regarding Athira’s chief executive officer and president Leen Kawas’ actions stemming from doctoral research conducted while at Washington State University.

Main Event

Temporary Leave Pending Board Review

06/17/2021

Company Statement

Athira announces the temporary leave of its chief executive officer (CEO) Leen Kawas pending a board of directors review of actions related to its doctoral research at Washington State University.

“This follows the Board’s determination to place Leen Kawas, PhD, President and Chief Executive Officer of Athira, on temporary leave pending a review of actions stemming from doctoral research Dr. Kawas conducted while at Washington State University. Dr. Kawas will remain on the Board. The Board has formed an independent special committee to undertake this review. The Company does not intend to comment further on this matter until the review has concluded.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$11.15	$18.24	$-7.09	-38.87%

See more on Factual Timeline

Initial Lawsuit

This is a federal securities class action on behalf of all investors who purchased or otherwise acquired Athira Pharma, Inc. securities between September 18, 2020 and June 17, 2021, inclusive.

Filing Date
06/25/2021
Class Period
09/18/2020 to 06/17/2021
Transgression
Securities Violation
Filing Firms
Block & Leviton, LLP
Tousley Brain Stephens PLLC
Case Title
Wang v. Athira Pharma Inc
Docket Number
2:21-cv-00861
Court
Washington Western District Court
Free File
Complaint

Allegations

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:

(1) that the research conducted by Kawas, which formed the foundation for Athira’s product candidates and intellectual property, was tainted by Kawas’ scientific misconduct, including the manipulation of key data;
(2) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and omitted material facts necessary in order to make the statements made not misleading.

Defendants

Company
Athira Pharma, Inc.
President
Leen Kawas

Lawsuit progression

Docket Number
2:21-cv-00861
Court
Washington Western District Court

Lead Counsel

10/05/2021

The court issued an order appointing the lead plaintiff and lead counsel.

Lead Counsel
Glancy Prongay & Murray LLP
Labaton Sucharow LLP
Lead Plaintiff
Group of Individuals
Free File
Order for lead

Amended Complaint

01/07/2022

This action is brought on behalf of: (a) all persons and entities that purchased or otherwise acquired Athira publicly traded securities during the period from September 17, 2020 through June 17, 2021, inclusive (see complaint for exceptions); and (b) all persons and entities that purchased or otherwise acquired Athira publicly traded common stock pursuant, or traceable, or both, to: (i) the registration statement and prospectus issued in connection with the company’s September 2020 initial public offering (IPO); or (ii) the registration statement and prospectus issued in connection with the company’s January 2021 secondary public offering (SPO); or (iii) any combination of the IPO or SPO.