Period: Aug 13, 2015 to Jan 17, 2017
Lead Plaintiff Deadline: Apr 18, 2017 + Deadline passed
Summary of Case:
A securities class action has been filed against Alcobra Ltd. (ADHD) on behalf of all persons who purchased or otherwise acquired Alcobra between August13, 2015 to January 17, 2017. This case has been filed in the USDC - New York (Southern).
The Complaint alleges as follows: During the Class Period, defendants caused the Company to issue materially false and misleading statements and/or omit material information regarding the Company's business, operational and compliance policies in connection with the Metadoxine extended release ("MDX") Evaluation in Adults - Study of Response and Efficacy," or the "MEASURE" study. Specifically, the Company's statements made throughout the Class Period were false and misleading and/or omitted material information because: (1) the statements discounted the results of the October 2014 Phase III Study (showing that there was no statistically significant benefit from MDX; (2) the statements assumed that if extreme placebo response patients were removed from the analysis, a statistically significant trend in favor of MDX results; it did not; (3) the statements were based upon disregarding Adults with attention deficit hyperactivity disorder ("ADHD") patients spontaneous improving with a placebo, while falsely attributing all improvement in subjects taking MDX to the medication and none to spontaneous improvement (though there is no basis to assume that spontaneous improvement in ADHD symptoms occurs only for placebo patients). As a result of the foregoing, defendants statements about Alcobra's business, operations, and prospects, including statements about the clinical prospects of MDX in the MEASURE study, were false and misleading and/or lacked a reasonable basis.
On January 17, 2017, the Company issued a press release and revealed that the MEASURE study failed to meet its primary endpoint, just as in the October 2014 Phase III Study. On this news, the Company's share price plummeted to close at $0.94 on January 17, 2017, down from $1.90 on January 13, 2017 (the previous trading day), a loss of $0.96, or approximately 51%, on usually heavy volume of 6,155,800 shares.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.