Law360 Features Proposed Shareholder Class-Action Filed by HSSK Against an Artificial Intelligence-Driven BioPharma Company08/03/2023
Law360 recently reported on a proposed shareholder class action lawsuit in which Hurwitz Sagarin Slossberg & Knuff LLC represents the plaintiff, Katelyn Martin, a BioXcel Therapeutics Inc. investor. In the lawsuit filed in New Haven federal court, Martin claims BioXcel, along with its CEO Vimal Mehta and CFO Richard Steinhart, failed to disclose to investors issues regarding the integrity of a study on BXCL501, a drug to treat agitated seniors with dementia, as well as made materially misleading statements about the company’s development plans. As a result, she contends, the company’s stock fell by nearly 64% at the end of June.
Martin argues that the problems could jeopardize and negatively impact the company’s ability to obtain regulatory approval of the drug. BioXcel reportedly uses artificial intelligence (AI) to develop drugs and previously raised substantial funds to identify new possible treatments.
If the class-action status is granted, shareholders who purchased BioXcel stock the day the clinical trials were announced until the day before the mistakes were disclosed will be eligible for inclusion in the class.
Martin is represented by HSSK attorneys David A. Slossberg and Erica O. Nolan as local counsel and Los Angeles-based law firms Glancy Prongay & Murray LLP and The Law Offices Of Frank R. Cruz.
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