SAN FRANCISCO–(BUSINESS WIRE)–#Adamas–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.
Contacts
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP
Telephone:
1-800-541-7358
