SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of Athira Pharma, Inc. (“Athira” or the “Company”) (Nasdaq: ATHA) between September 18, 2020 and June 17, 2021 (the “Class Period”), including Athira common stock purchased pursuant or traceable to the registration statement and prospectus issued in connection with the Company’s initial public offering (“IPO”) in September 2020.
If you purchased or otherwise acquired Athira securities during the Class Period and/or in the IPO, you may move the Court for appointment as lead plaintiff by no later than August 24, 2021. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Athira investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Athira Securities Class Litigation
Athira, headquartered in Bothell, Washington, is a clinical-stage biopharmaceutical company focused on the development of molecular technology in the treatment of neurological diseases, including Alzheimer’s disease. In September 2020, Athira completed its IPO by issuing and selling approximately 13 million shares of common stock at $17.00 per share, for net proceeds of approximately $186 million.
The actions allege that, throughout the Class Period, defendants made materially false and misleading statements and/or omitted to state material adverse facts regarding the Company’s business, operations, and prospects. Specifically, the actions allege that defendants failed to disclose to investors that the doctoral research conducted by Athira’s Chief Executive Officer and President, defendant Leen Kawas contained improperly altered images and constituted potential research misconduct. Kawas’s research reportedly was foundational to Athira’s efforts to develop treatments for Alzheimer’s disease and cited in a patent licensed by Athira.
On June 17, 2021, after markets closed, Athira announced that Kawas was placed on temporary leave pending an investigation by a special committee into “actions stemming from doctoral research Dr. Kawas conducted while at Washington State University.” The same day, the scientific publication STAT reported that the investigation involves allegedly altered images appearing in four papers for which Kawas was the lead author. According to STAT, Kawas’s research papers “are foundational to Athira’s efforts to treat Alzheimer’s” and her “doctoral work laid the biological groundwork that Athira continues to use in their approach to treating Alzheimer’s.” According to an investment analyst, the investigation could have “clear negative implications for how we/investors view the asset, and/or management credibility.” On this news, the price of Athira common stock fell $7.09 per share, or 38.9%, from a closing price of $18.24 on June 17, 2021, to close at $11.15 per share on June 18, 2021, on heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich is an internationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility worldwide.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
For more information about Lieff Cabraser and the firm’s representation of investors, please visit https://www.lieffcabraser.com/.
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