Glancy Prongay & Murray LLP Files Securities Fraud Lawsuit Against Athira Pharma, Inc.
LOS ANGELES, June 26, 2021 – (BUSINESS WIRE) – Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit named Jawandha v. Athira Pharma, Inc., et al., (Case No. 21-cv-862) on behalf of individuals and legal entities who have acquired or otherwise acquired Athira Pharma, Inc. (“Athira” or the “Company”) ( NASDAQ: ATHA) common stock pursuant to and / or traceable to the registration statement and prospectus (collectively the “Registration Statement”) issued in connection with the Company’s initial public offering in September 2020 (“IPO” or the “Offering”). Plaintiff is pursuing claims against defendants under the Securities Act of 1933 (the “Securities Act”).
Investors are hereby notified that they have 60 days from this notification to move the court as the lead plaintiff in this lawsuit.
If you have suffered a loss on your Athira investments or would like to inquire whether you would like to make claims under U.S. securities laws to recover your loss, you can find your contact information at https://www.glancylaw.com/ cases / athira-pharma. submit -inc /. You can also contact Charles H. Linehan of GPM at 310-201-9150, toll free at 888-773-9224, email [email protected], or visit our website at www.glancylaw.com to learn more about your rights.
Athira is a late-stage clinical biopharmaceutical company focused on developing small molecules to restore neuronal health and stop neurodegeneration.
On June 17, 2021, after the market closed, Athira announced that she would be her President and Chief Executive Officer, Dr. Leen Kawas (“Kawas”), pending review of the measures arising from her doctoral thesis at Washington State University (“WSU”).
On the same day, STAT published an article stating that the WSU was investigating claims that Dr. Kawas “published several articles with altered images while she was a PhD student”. These publications “are fundamental to Athira’s efforts to treat Alzheimer’s disease” because they “demonstrated that a particular molecule affects the activity of HGF”. Although Athira developed a different molecule than the one Kawas studied in the papers in question, her “PhD thesis laid the biological foundations that Athira continues to use in her approach to treating Alzheimer’s”.
The story goes on
Based on this news, the company’s share price fell $ 7.09, or about 39%, on an unusually high trading volume, and closed at $ 11.15 per share on June 18, 2021.
At the start of this move, the company’s stock was trading at just $ 10.34 per share, down nearly 40% from its IPO price of $ 17 per share.
The registration statement was essentially inaccurate and misleading and did not state: (1) that Kawas had published research during her studies that contained improperly altered images; (2) that this alleged research was fundamental to Athira’s efforts to develop treatments for Alzheimer’s, as it laid the biological foundation that Athira used in his approach to treating Alzheimer’s; (3) as a result, Athira’s intellectual property and product development for the treatment of Alzheimer’s disease was based on invalid research; and (4) that, based on the foregoing, Defendants’ positive statements about the business, operations, and prospects of the Company were materially misleading and / or improperly based.
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If you have purchased or otherwise acquired Athira common stock in accordance with the IPO, you may request the court to appoint you as the lead plaintiff no later than 60 days after such notice. You don’t need to do anything at this point to be a member of the class; You can hire a lawyer of your choice or do nothing and remain an absent member of the group. If you would like to learn more about this promotion, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, email [email protected], or visit our website at www.glancylaw.com. For inquiries by e-mail, please include your postal address, telephone number and the number of shares purchased.
This press release may be viewed as a solicitation in some jurisdictions subject to applicable laws and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210625005509/en/
Glancy Prongay & Murray LLP, Los Angeles
Charles H. Linehan, 310-201-9150 or 888-773-9224
1925 Century Park East, Suite 2100
Los Angeles, CA 90067