SAN DIEGO & EMERYVILLE, Calif.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24ADMS&src=ctag” target=”_blank”gt;$ADMSlt;/agt; lt;a href=”https://twitter.com/hashtag/ClassAction?src=hash” target=”_blank”gt;#ClassActionlt;/agt;–Shareholder rights law firm Robbins
Arroyo LLP announces that purchasers of Adamas Pharmaceuticals Inc.
(NASDAQ: ADMS) filed a class action complaint against the company for
alleged violations of the Securities and Exchange Act of 1933 pursuant
to the company’s January 2018 secondary public offering (“SPO”). Adamas
is a commercial stage pharmaceutical company that specializes in
developing drug treatment therapies for chronic neurologic disorders.
Adamas’s primary product is amantadine, also known as GOCOVRI and
formerly referred to as ADS-5102.
View this information on the law firm’s Shareholder Rights Blog:
https://www.robbinsarroyo.com/adamas-pharmaceuticals-inc/
Adamas Accused of Inflating its SPO Price
According to the complaint, before launching Gocovri, Adamas knew it
faced significant roadblocks that would dramatically reduce its ability
to sell the drug, yet did not inform—and actively misled—the market
about this problem. Adamas failed to disclose known risks and trends
that impacted the company before, during, and after the SPO. Therefore,
when Adamas held its SPO in January 2018, it was able to offer its stock
at $41.50 per share for gross proceeds of $134 million. In October 2018,
Merrill Lynch released a study that cast serious doubt on Gocovri’s
ability to achieve a sizeable market share, and highlighted a number of
factors that made clear how Adamas omitted critical information. In
March 2019, Adamas walked-back prior growth estimates and refused to
make further predictions about Gocovri’s ability to achieve a sizeable
market share. On this news, Adamas’s stock fell 33% to $8.16 per share,
a decline of over 80% in the approximate year following the SPO.
Adamas Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leo Kandinov at (800)
350-6003, [email protected],
or via the shareholder
information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Contacts
Leo Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San
Diego, CA 92122
[email protected]
(619)
525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
