Class ction lawsuit filed against BioXcel Therapeutics, alleging material misstatements and violations of the Securities Exchange Act of 1934
Deals
July 8, 2023
Glancy Prongay & Murray LLP ("GPM"), a leading national shareholder rights litigation firm, has announced the filing of a class action lawsuit against BioXcel Therapeutics, Inc. ("BioXcel" or the "Company") in the United States District Court for the District of Connecticut. The lawsuit, captioned Martin v. BioXcel Therapeutics, Inc., et al., seeks to represent individuals and entities that purchased or acquired BioXcel securities between December 15, 2021, and June 28, 2023. The legal action alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The class action lawsuit alleges that BioXcel and its executives made materially false and/or misleading statements and failed to disclose crucial information about the Company's business, operations, and prospects throughout the Class Period. The defendants are accused of lacking adequate internal controls over protocol adherence and data integrity, which resulted in non-adherence to approved informed consent forms and inadequate case histories for certain patients. Additionally, the complaint alleges that the principal investigator fabricated email correspondence with a pharmacovigilance safety vendor and provided this falsified evidence to the FDA. These alleged actions are said to have negatively impacted BioXcel's ability to obtain regulatory approval for BXCL501, the Company's treatment for agitation associated with dementia in patients with probable Alzheimer's disease.
Following the disclosure of these allegations, BioXcel's stock price plummeted by $11.28 per share, representing a significant decline of 63.8%. The stock closed at $6.39 per share on June 29, 2023, on unusually heavy trading volume. This substantial decrease in stock value has led investors to suffer substantial financial losses.
Investors who incurred losses on their BioXcel investments during the specified Class Period or are interested in pursuing claims under the federal securities laws have been notified that they have 60 days from the date of this notice to move the Court to serve as lead plaintiff in the class action lawsuit. By acting as the lead plaintiff, investors may have the opportunity to actively participate in the legal proceedings.
Investors who wish to learn more about their rights or inquire about potentially recovering their losses under the federal securities laws can submit their contact information at www.glancylaw.com/cases/BioXcel-Therapeutics-Inc/. Alternatively, they can contact Charles H. Linehan of GPM at 310-201-9150 or toll-free at 888-773-9224. Investors can also reach out via email at shareholders@glancylaw.com or visit the GPM website at www.glancylaw.com.
This article does not constitute legal advice. It is essential to consult with legal professionals to understand individual rights and options in light of the BioXcel class action lawsuit.
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