Lieff Cabraser announces that class action litigation has been filed on behalf of investors who purchased the common stock of Adamas Pharmaceuticals, Inc. (“Adamas” or the “Company”) (Nasdaq: ADMS) directly in the Company’s January 24, 2018 secondary public offering (“SPO”).
If you purchased Adamas common stock directly in the SPO, you may move the Court for appointment as lead plaintiff. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the actions.
Adamas investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Adamas Securities Class Litigation
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 has been approved by the U.S. Food and Drug Administration for the treatment of levodopa-induced dyskinesia.
The action alleges 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.”
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP