SAN DIEGO & EMERYVILLE, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between August 8, 2017 and September 30, 2019. Adamas is a commercial stage pharmaceutical company that specializes in developing drug treatment therapies for chronic neurologic disorders. Adamas' primary product is GOCOVRI.
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Adamas Pharmaceuticals, Inc. (ADMS) Accused of Misleading Shareholders
According to the complaint, throughout the relevant period, Adamas consistently assured investors of insurer support for its drug GOCOVRI, touting that "[Adamas] is seeing prescription fulfillment across most every plan" and "the vast majority of plans give [Adamas] good support for reimbursement for GOCOVRI." However, on October 5, 2018, an analyst at Bank of America/Merill Lynch downgraded Adamas, revealing a survey of doctors showed a higher-than-expected dropout rate for GOCOVRI due to high cost and difficulty in securing prior authorization from payers. Then, on March 4, 2019, Adamas revealed during a conference call that the Company was rescinding its previous prescription growth estimates for GOCOVRI and warned of a continued slowdown in GOCOVRI prescriptions. Finally, on September 20, 2019, another analyst from Bank of America/Merill Lynch lowered its rating for Adamas shares to "underperform," citing the exclusion of GOCOVRI on a number of national formularies and anticipated reimbursement hurdles as reasons. Since this news, the stock has declined almost 73% from its October 5, 2018 closing price of $23.81, currently trading at around $6.50.
Adamas Pharmaceuticals, Inc. (ADMS) Shareholders Have Legal Options
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