Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
01/20/2021
Initial Lawsuit
01/20/2021
Lawsuit Progression
04/28/2021
Plaintiff brings this securities class action on behalf of all persons and entities, other than Defendants, who purchased Lizhi American Depositary Shares pursuant and/or traceable to the Company’s Registration Statement issued in connection with the Company’s January 17, 2020 initial public offering.
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) at the time of the IPO, the coronavirus was already ravaging China, the home base, principal market, and significant hub for Lizhi, its employees, and its customers;
(ii) the complications associated with the coronavirus were already negatively affecting Lizhi’s business, as employees and customers contracted the virus, lost employment, or otherwise experienced difficulty in generating, publishing, and monetizing the content critical to Lizhi’s platform;
(iii) even prior to the IPO, Lizhi employees and customers complained of, and to, Lizhi, which harmed the Company’s reputation and financial condition and prospects;
(iv) 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.