Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
11/05/2021
Initial Lawsuit
02/07/2022
Lawsuit Progression
05/04/2022
This is a class action on behalf of all persons and entities that purchased Telos common stock between November 19, 2020 and November 12, 2021, 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 TSA and CMS contracts, which constituted a majority of the company’s future revenues, were not on track to commence as represented at the end of 2021 and in 2022;
(2) defendants lacked a reasonable basis and sufficient visibility to provide and affirm the company’s 2021 guidance in the face of the uncertainty surrounding the TSA and CMS contracts;
(3) COVID-19- and hacking scandal-related headwinds were throwing off the timing for performance of the TSA and CMS contracts and their associated revenues;
(4) as a result, the guidance provided by defendants was not in fact “conservative”;
(5) as a result of the delays, Telos would be forced to dramatically reduce its revenue estimates; and
(6) as a result of the foregoing, defendants’ statements about Telos’ business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.