On December 10, 2019, Franklin D. Azar & Associates and Thornton Law Firm, LLP filed a securities class action lawsuit against Adamas Pharmaceuticals, Inc. (“Adamas”), Gregory T. Went, and Alfred G. Merriweather in the United States District Court for the Northern District of California, and docketed under Zaidi v. Adamas Pharmaceuticals, Inc., et al., Case No. 4:19-cv-08051. Adamas investors who have purchased at least 500 shares of Adamas stock and are interested to learn more about the case are encouraged to contact Franklin D. Azar & Associates at firstname.lastname@example.org or call 1-844-241-9475.
Interested shareholders have until February 8, 2020, to apply to be lead plaintiff. The lawsuit alleges violations of the federal securities laws, and the class has not yet been certified. Until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
Adamas 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 Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, it is alleged that Defendants made materially false and misleading statements about: (1) managed care’s acceptance of GOCOVRI; (2) the breadth of insurer coverage for GOCOVRI prescriptions; and (3) the impact of the Company’s commercialization efforts. In addition, it is alleged that Defendants failed to disclose: (1) that health insurers were excluding GOCOVRI from their prescription formularies or requiring patients to use “step therapy” – i.e., making patients try immediate-release amantadine prior to covering GOCOVRI; (2) that the rapid increase in physicians prescribing GOCOVRI during the Class Period was not due to its efficacy; and (3) that, as a result of the foregoing, the Company’s financial statements and Defendants’ statements about Adamas’s business, operations, and prospects, were materially false and misleading at all relevant times.
After the market closed on March 4, 2019, during Adamas’s Q4 2018 conference call with investors, Adamas walked back its previous prescription growth estimates for GOCOVRI, warned of a continued slow-down in GOCOVRI 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, or 32.84%, to close at $8.16 per share on March 5, 2019.
On September 30, 2019, Bank of America/Merrill Lynch analyst Tazeen Ahmad lowered its rating for Adamas shares to “Underperform” noting “existing overhangs for ADMS: (1) Gocovri coverage: a number of national formularies exclude Gocovri. We expect reimbursement hurdles in MSWI space especially with generic Ampyra launch.” On this news, Adamas shares fell a further 42.83% from $7.05 per share on September 26 to $4.03 by October 3, 2019.
If you purchased or acquired Adamas securities during the Class Period, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Northern District of California no later than February 8, 2020. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
Franklin D. Azar & Associates’ securities attorneys are highly experienced in representing individual shareholders and institutional investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. Franklin D. Azar & Associates is working with Thornton Law Firm LLP in this action. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.