Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Nov. 28, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Axsome Therapeutics, Inc. ("Axsome" or "the Company") (NASDAQ:AXSM) investors that a lawsuit filed on behalf of investors that purchased Axsome securities between May 10, 2021 and April 22, 2022, inclusive (the “Class Period”)
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The complaint alleges that throughout the Class Period, the defendants engaged in the making of materially false and misleading statements concerning the Company's business, operations, and prospects. Specifically, the Defendants are accused of making false or misleading statements and failing to disclose the following:
- The Company's development of AXS-07 encountered significant CMC (Chemistry, Manufacturing, and Controls) problems. These problems included the Company's Chief Medical Officer (CMO) being unable to produce an adequate supply of AXS-07, even for limited clinical trials. These issues were required to be disclosed when discussing CMC concerns or making positive statements about clinical trial results and assurances regarding the filing of the AXS-07 New Drug Application (NDA).
- Consequently, it was unlikely that the Company would meet its initially stated timeline for submitting the AXS-07 NDA.
- The unresolved CMC problems persisted even after the Company had submitted its NDA for AXS-07.
- As a result of these issues, the defendants either knew or exhibited severe recklessness in not knowing that the FDA would likely delay or potentially reject the approval of the AXS-07 NDA due to the unresolved and significant CMC problems.
Following the news release on April 25, 2022, Axsome's stock price experienced a sharp decline of $8.60 per share, representing a 21.99% decrease. It closed at $30.50 per share, and the trading volume was more than 2.7 times the 20-day moving average.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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