Amylyx Pharmaceuticals, Inc. Slapped with Lawsuit Over Alleged Securities Violations
Amylyx Pharmaceuticals, Inc. is facing a lawsuit for alleged securities violations. The lawsuit has been filed by Bernstein Liebhard LLP, representing investors who bought the company’s securities between November 11, 2022, and November 8, 2023. The lawsuit has been filed in the United States District Court for the Southern District of New York.
Lawsuit Against Amylyx Pharmaceuticals Over Alleged Securities Violations
The lawsuit accuses the biotechnology firm, which manufactures medicines for neurodegenerative diseases, of contravening the Securities Exchange Act of 1934, which requires disclosure of important information by anyone seeking to acquire more than 5 percent of a company’s securities by direct purchase or tender offer.
The lawsuit alleges that Amylyx Pharmaceuticals, Inc. inflated the commercial prospects as well as the prescription rate of its drug “RELAVRIO,” which was approved by the FDA in September 2022 for treating people suffering from amyotrophic lateral sclerosis (ALS) in the United States.
However, it is alleged that the company did not disclose that new patients were taking the medicine at a lesser rate, and there were also compliance issues since many patients were discontinuing the treatment six months after initiating “RELAVRIO.”
Amylyx Pharmaceuticals, Inc. released its third quarter financial results on November 9, 2023.The earnings per share stood at $0.30 whereas the prediction was an earning of $0.42. Thus there was a shortfall of $0.12.
The company also revealed in a conference call that there was a marked fall in new patients who were initiating the “RELAVRIO” treatment. There was also a marked increase in discontinuation among patients already on treatment.
This led to the tanking of the value of shares by 31.89%, and it closed at $12.26 per share on the same day.
Bernstein Liebhard LLP has asked all investors who had invested in Amylyx securities to contact the law firm before April 9, 2024.
Bernstein Liebhard LLP, since its inception in 1993, is reported to have recovered $3.5 billion for investors.
Amylyx Pharmaceuticals, Inc. is a biotech company that has been researching and developing treatments for Amyotrophic Lateral Sclerosis (“ALS”), also known as Lou Gehrig’s disease, and other neurodegenerative diseases. Among its products is AMX0035, which goes by the trade name of “RELAVRIO.” It is a dual UPR-Bax apoptosis suppressor and is composed of sodium phenylbutyrate and tauroursodeoxycholic acid, for the treatment of ALS in adults in the U.S.
Amyotrophic Lateral Sclerosis is a degenerative neurological disorder that leads to progressive loss of muscle strength. The onset of the disease begins in the limbs and later progresses to other parts of the body. The disease is chronic and often fatal with very few treatment options.
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