OAKLAND, Calif.--(BUSINESS WIRE)--Gibbs Law Group reminds investors that a class action lawsuit has been filed against BioXcel Therapeutics, Inc. (NASDAQ: BTAI), on behalf of investors who purchased or acquired shares between December 15, 2021, and June 28, 2023, inclusive. Shares of BioXcel dropped 65% on June 29, 2023, after the company disclosed potential protocol and data integrity issues related to how its safety data was being recorded at a late-stage drug trial testing site. Gibbs Law Group encourages BioXcel investors to contact us to discuss their legal rights and options before the lead plaintiff deadline of September 5, 2023.
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Thursday, June 29, 2023, shares of biotech company BioXcel dropped 65% after the company disclosed that the principal investigator at its clinical trial site fabricated emails meant to demonstrate that a report detailing an adverse safety event in a patient had been timely reported. Previously, in December 2022, the FDA conducted an on-site inspection and discovered that the same principal investigator may have failed to follow certain protocols, including adhering to the study’s approved consent form and keeping adequate case histories for certain patients.
After BioXcel became aware of the principal investigator’s fabricated emails in May 2023, it launched an investigation and announced a plan to hire an independent auditing group to investigate the issue. According to BioXcel, this may delay “the timing of the Company’s development plans for, and prospects for regulatory approval” of its Alzheimer’s drug, BXCL501, by two to three months, and may lead to “new findings regarding the integrity of the trial data from this principal investigator’s site, the accuracy of safety or efficacy findings, or the usability of the data in connection with a marketing application.”
Then, on August 14, 2023, BioXcel stock plummeted 42% after the company announced it has plans to lay off over half its workforce. Additionally, the biotech company will pause the phase two trial for its Igalmi drug.
Following the initial data integrity issues, BioXcel’s stock price dropped 65% on June 29, 2023, causing significant harm to investors.
What Should BioXcel Investors Do?
If you invested in BioXcel Therapeutics, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether BioXcel Therapeutics, Inc. has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
This press release may constitute Attorney Advertising in some jurisdictions under the applicable law and ethical rules.