RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP reminds that an investor securities fraud class action lawsuit has been filed against ACADIA Pharmaceuticals Inc. (Nasdaq: ACAD) (“ACADIA”) on behalf of purchasers of ACADIA securities between April 29, 2016 and July 9, 2018, inclusive (the “Class Period”).
ACADIA investors who purchased securities during the Class Period may, no later than September 17, 2018, seek to be appointed as a lead plaintiff representative of the class.
Investors who wish to discuss this securities fraud class action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys James Maro, Jr. or Adrienne Bell at (888) 299-7706 or online at: www.ktmc.com/acadia-pharmaceuticals-securities-class-action
According to the complaint, ACADIA is purportedly a biopharmaceutical company focused on the development and commercialization of medicines to address central nervous system disorders. The company claims its lead drug is NUPLAZID, which was approved by the U.S. Food and Drug Administration (“FDA”) on April 29, 2016 for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. ACADIA launched NUPLAZID in the U.S. in May 2016.
The Class Period commences on April 29, 2016, when ACADIA issued a press release announcing that the FDA approved NUPLAZID for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis. ACADIA further stated that “[t]he FDA approval of NUPLAZID was based on data from the pivotal Phase III Study-020 and other supportive studies, representing the largest research and development program in Parkinson’s disease psychosis to date.”
The complaint alleges that, on April 9, 2018, CNN reported that “[p]hysicians, medical researchers and other experts told CNN that they worried that [NUPLAZID] had been approved too quickly, based on too little evidence that it was safe or effective. And given these mounting reports of deaths, they say that more needs to be done to assess Nuplazid’s true risks.” Following this news, ACADIA’s share price fell $5.03 per share, or 23.4%, to close at $16.50 per share on April 9, 2018.
Then, on April 25, 2018, CNN reported that the FDA was re-examining the safety of NUPLAZID. Following this news, ACADIA’s share price fell $4.27 per share, or 21.9%, to close at $15.20 per share on April 25, 2018.
Finally, on July 9, 2018, the Southern Investigative Reporting Foundation (the “SIRF”) published a report entitled “Acadia Pharmaceuticals: This Is Not a Pharmaceuticals Company.” Therein, the SIRF stated that “evidence is mounting that something is horribly wrong with ACADIA’s sole drug, NUPLAZID,” and that “ACADIA has accomplished its growth in ways that have attracted intense regulatory scrutiny for other drug companies” including “dispensing wads of cash to doctors to incentivize prescription writing and downplaying mounting reports of patient deaths.” Following this news, ACADIA’s share price fell $1.21 per share, or 6.8%, to close at $16.63 per share on July 9, 2018.
The complaint alleges that throughout the Class Period, the defendants failed to disclose that: (1) adverse events and safety concerns related to NUPLAZID threatened the drug’s initial and continuing FDA approval; (2) ACADIA engaged in business practices likely to attract regulatory scrutiny; and (3) as a result of the foregoing, the defendants’ statements about ACADIA’s business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
ACADIA investors may, no later than September 17, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel of their choice, or may choose to do nothing and remain an absent class member.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.