Lieff Cabraser 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
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP