ADMS INVESTORS NOTICE: Lieff Cabraser Investigates Claims Against Adamas Pharmaceuticals, Inc.
June 17 2019 - 5:54PM
Business Wire
The law firm of Lieff Cabraser Heimann & Bernstein, LLP is
investigating claims on behalf of investors of Adamas
Pharmaceuticals, Inc. (“Adamas” or the “Company”) (Nasdaq: ADMS),
including investors who purchased Adamas common stock directly in
the Company’s January 24, 2018 secondary public offering
(“SPO”).
Adamas investors who wish to learn more about the investigation
should click here or contact Sharon M. Lee of Lieff Cabraser
toll-free at 1-800-541-7358.
Background on the Adamas Investigation
Adamas, incorporated in Delaware and headquartered in
Emeryville, California, is a commercial stage pharmaceutical
company that specializes in developing drug treatment therapies for
chronic neurologic disorders. Adamas’s primary product is GOCOVRI,
an extended-release formulation of amantadine (formerly referred to
as ADS-5102), which was approved by the U.S. Food and Drug
Administration in August 2017 for the treatment of levodopa-induced
dyskinesia.
The investigation focuses on whether Adamas and certain of its
senior officers issued materially false or misleading statements
and/or failed to disclose material information concerning Adamas.
According to a recently-filed action, the SPO registration
statement and prospectus (collectively, the “Offering Documents”)
contained untrue statements and/or omitted material facts required
to be stated or necessary to make statements therein not
misleading. Specifically, the action alleges that Adamas made
materially false and misleading statements in the Offering
Documents about known risks and trends that would dramatically
reduce its ability to sell GOCOVRI, including: (i) that insurers
required physicians to obtain prior authorization before
prescribing the drug; (ii) that insurers required physicians to
prescribe cheaper generic alternatives before seeking prior
authorization; (iii) that GOCOVRI is exorbitantly more expensive
than its generic alternatives; and (iv) that physicians were
ambivalent about GOCOVRI’s efficacy.
Through its SPO, Adamas sold approximately 3.45 million shares
of its common stock to the investing public at $41.50 per share. On
October 5, 2018, Merrill Lynch released a study of physicians and
subscribers that cast serious doubt on GOCOVRI’s ability to achieve
a sizeable market share, and it specifically identified a number of
facts that rendered the Company’s statements in the Offering
Documents false or misleading.
On March 4, 2019, Adamas walked back its previous growth
estimates for GOCOVRI, warned of a continued slow-down in
prescriptions, and refused to make further predictions about
GOCOVRI’s ability to achieve a sizeable market share. On this news,
Adamas’s stock fell $3.99 per share, to close at $8.16 per share on
March 5, 2019, capping off a decline of over 80% in the year
following the SPO.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San
Francisco, New York, and Nashville, is a nationally recognized law
firm committed to advancing the rights of investors and promoting
corporate responsibility.
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.” In late 2016, Benchmark Litigation
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
http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190617005923/en/
Sharon M. LeeLieff Cabraser Heimann & Bernstein,
LLPTelephone: 1-800-541-7358
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