Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
Menu
Investigation
02/24/2022
Initial Lawsuit
04/04/2022
Lawsuit Progression
06/03/2022
This is a securities class action on behalf of all persons or entities who purchased or otherwise acquired Everbridge common stock between November 4, 2019 and February 24, 2022, 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:
(i) Defendants failed to disclose that Everbridge struggled to integrate the new businesses it acquired as, upon information and belief, the products of the acquired companies required multiple, different systems to operate, running on different internal databases, with dedicated sales staff who operated with different procedures and different sales software, some located in different time zones;
(ii) The inability to integrate the sales staff of the acquired companies led to most of them leaving the company, taking with them crucial knowledge relating to the acquired products and prior successful efforts to sell them;
(iii) With each new company that was acquired, these problems multiplied, and Everbridge’s focus was taken off particular difficult integration issues pertinent to prior acquisitions; and
(iv) These problems, and the increasing complexity of Everbridge’s product line, created increasing difficulty in the company’s ability to pitch a single, coherent system and sell its products to new and existing customers.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.