Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
11/15/2021
Initial Lawsuit
02/16/2022
Lawsuit Progression
04/18/2022
This is a federal securities class action on behalf of a class consisting of:
(a) all persons or entities that purchased or otherwise acquired Butterfly securities between February 16, 2021 and November 15, 2021, both dates inclusive, and/or
(b) all holders of Butterfly common stock as of the record date for the special meeting of shareholders held on February 12, 2021 to consider approval of the merger between Longview and Butterfly and entitled to vote on the merger.
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) Butterfly had overstated its post-merger business and financial prospects;
(ii) notwithstanding the ongoing COVID-19 pandemic, Butterfly’s financial projections failed to take into account the pandemic’s broad consequences, which included healthcare logistical challenges, and medical personnel fatigue;
(iii) accordingly, Butterfly’s gross margin levels and revenue projections were less sustainable than the company had represented;
(iv) all the foregoing was reasonably likely to have a material negative impact on Butterfly’s business and financial condition; 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.