Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
12/22/2021
Initial Lawsuit
12/22/2021
Lawsuit Progression
02/22/2022
This is a securities fraud class action on behalf of all purchasers of Chegg
common stock between May 5, 2020 and November 1, 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:
(a) that Chegg’s increase in subscribers, growth, and revenue had been a temporary effect of the COVID-19 pandemic that resulted in remote
education for the vast majority of U.S. students and once the pandemic-related restrictions eased and students returned to campuses nationwide, Chegg’s extraordinary growth trends would end.
(b) that Chegg’s subscriber and revenue growth were largely due to the
facilitation of cheating – an unstable business proposition – rather than the strength of its business model or the acumen of its senior executives and directors; and
(c) that as a result, the company’s current business metrics and financial prospects were not as strong as it had led the market to believe during the class period.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.