Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
09/24/2021
Initial Lawsuit
09/24/2021
Lawsuit Progression
10/26/2021
Plaintiff brings this securities class action on behalf of persons and entities that purchased or otherwise acquired Cassava securities between September 14, 2020 and August 27, 2021, 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:
(1) the quality and integrity of the scientific data supporting Cassava’s claims for simufilam’s efficacy had been overstated;
(2) data underlying the foundational research for Cassava’s product candidates had been manipulated;
(3) experiments using post-mortem human brain tissue frozen for nearly 10 years was contrary to a basic understanding of neurobiology;
(4) biomarker analysis for patients treated with simufilam had been manipulated to conclude that simufilam was effective;
(5) as a result of the foregoing, there was a reasonable likelihood that Cassava would face regulatory scrutiny in connection with the development of simufilam; and
(6) as a result of all the foregoing, Defendants’ positive statements during the Class Period about the Company’s business metrics and financial prospects and the likelihood of FDA approval were false and misleading and/or lacked a reasonable basis.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.