Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
05/19/2022
Initial Lawsuit
05/27/2022
Lawsuit Progression
07/26/2022
An investor filed this securities class action on behalf of persons and entities that purchased or otherwise acquired LMP securities between June 29, 2021 and May 19, 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:
(1) that the company engaged in the improper identification and elimination of intercompany transactions;
(2) that the company used incorrect estimates for chargeback reserves for finance and insurance products;
(3) that the company had misclassified certain items in its financial statements which impacting balance sheet and income statement financial statement captions;
(4) that there were material weaknesses in LMP’s internal control over financial reporting;
(5) that, as a result of the foregoing, the company overstated its revenue;
(6) that, as a result of the foregoing, the company would restate certain of its previously issued financial statements and results; and
(7) 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.