Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
02/19/2022
Initial Lawsuit
03/18/2022
Lawsuit Progression
06/13/2022
This is a class action on behalf of persons or entities who purchased or otherwise acquired publicly traded FAT Brands securities between December 4, 2017 and February 18, 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:
(1) the company and the Wiederhorns engaged in transactions “for no legitimate corporate purpose”;
(2) the company ignored warning signs relating to transactions with the Wiederhorns;
(3) as a result, the company was likely to face increased scrutiny, investigations, and other potential issues;
(4) certain executives, who are touted as critical to the company’s success, were at great risk of scrutiny—potentially, at least in part, due to the company’s actions;
(5) the company’s touted CEO and COO were under investigation regarding transactions with the company; and
(6) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.