Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
07/09/2021
Initial Lawsuit
07/09/2021
Lawsuit Progression
09/13/2021
This is a federal securities class action on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired: (a) Orphazyme American depositary shares pursuant and/or traceable to the Offering Documents (defined below) issued in connection with the Company’s initial public offering conducted on or about September 29, 2020; and/or (b) Orphazyme securities between September 29, 2020 and June 18, 2021, both dates 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) arimoclomol was not as effective in treating IBM as Defendants had represented;
(ii) arimoclomol was not as effective in treating ALS as Defendants had represented;
(iii) the arimoclomol NDA for NPC was incomplete and/or required additional evidence and data to support the benefit-risk assessment of that NDA;
(iv) as a result of (iii), the FDA was unlikely to approve the arimoclomol NDA for NPC in its present form;
(v) the Company’s overall business prospects, as well as arimoclomol’s commercial prospects, were significantly overstated;
(vi) as a result, the Offering Documents and Defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.