Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
10/06/2021
Initial Lawsuit
10/06/2021
Lawsuit Progression
01/05/2022
This is a class action on behalf of persons and entities that purchased or otherwise acquired Eargo securities between February 25, 2021 and September 22, 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:
(i) that Eargo had improperly sought reimbursements from certain third-party payors;
(ii) that the foregoing was reasonably likely to lead to regulatory scrutiny;
(iii) that, as a result and because the reimbursements at issue involved the company’s largest third-party payor, Eargo’s financial results would be adversely impacted; and
(iv) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.