Securities class action litigation has been filed on behalf of investors in the securities of Athira Pharma, Inc. (“Athira” or the “Company”) (NASDAQ: ATHA). If you purchased or otherwise acquired Athira securities between September 18, 2020 and June 17, 2021, including Athira common stock purchased pursuant or traceable to the registration statement and prospectus issued in connection with the Company’s initial public offering (“IPO”) in September 2020, you may move the Court for appointment as lead plaintiff by no later than August 24, 2021.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
Athira investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should use the form below or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Athira Securities Class Litigation
Athira, headquartered in Bothell, Washington, is a clinical-stage biopharmaceutical company focused on the development of molecular technology in the treatment of neurological diseases, including Alzheimer’s disease. In September 2020, Athira completed its IPO by issuing and selling approximately 13 million shares of common stock at $17.00 per share, for net proceeds of approximately $186 million.
The actions allege that, throughout the Class Period, defendants made materially false and misleading statements and/or omitted to state material adverse facts regarding the Company’s business, operations, and prospects. Specifically, the actions allege that defendants failed to disclose to investors that the doctoral research conducted by Athira’s Chief Executive Officer and President, defendant Leen Kawas contained improperly altered images and constituted potential research misconduct. Kawas’s research reportedly was foundational to Athira’s efforts to develop treatments for Alzheimer’s disease and cited in a patent licensed by Athira.
On June 17, 2021, after markets closed, Athira announced that Kawas was placed on temporary leave pending an investigation by a special committee into “actions stemming from doctoral research Dr. Kawas conducted while at Washington State University.” The same day, the scientific publication STAT reported that the investigation involves allegedly altered images appearing in four papers for which Kawas was the lead author. According to STAT, Kawas’s research papers “are foundational to Athira’s efforts to treat Alzheimer’s” and her “doctoral work laid the biological groundwork that Athira continues to use in their approach to treating Alzheimer’s.” According to an investment analyst, the investigation could have “clear negative implications for how we/investors view the asset, and/or management credibility.” On this news, the price of Athira common stock fell $7.09 per share, or 38.9%, from a closing price of $18.24 on June 17, 2021, to close at $11.15 per share on June 18, 2021, on heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States and has assisted clients in recovering over $124 billion in verdicts and settlements. Benchmark Litigation named Lieff Cabraser its “2020 California Plaintiff Firm of the Year,” and in early 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Lieff Cabraser is committed to access to justice for all.