NEW YORK, March 21, 2024 /PRNewswire/ — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Anavex Life Sciences Corp. (“Anavex” or “the Company”) (NASDAQ: AVXL) and certain of its officers.
Class Definition:
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Anavex securities between February 1, 2022 and January 1, 2024, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/AVXL.
Case Details:
Anavex investigates, manufactures, and markets pharmaceuticals for central nervous system (CNS) disorders.
Anavex’s primary product is blarcamesine (Anavex 2-73). Blarcamesine aims to modify specific genetic pathways associated with some CNS disorders. Anavex has sponsored several research studies concerning blarcamesine’s suitability to treat various CNS disorders. One such disorder Anavex has investigated is Rett syndrome, a neurodevelopmental disorder affecting primarily females.
The Complaint alleges that during the Class Period Anavex engaged in a scheme to deceive the market and a course of conduct that artificially inflated the price of Anavex stock and operated as a fraud or deceit on Class Period purchasers of Anavex stock by failing to disclose and misrepresenting the adverse facts. When Avanex’s prior misrepresentations and fraudulent conduct were disclosed and became apparent to the market on January 2, 2024, the price of Anavex stock fell precipitously.
For example, the Complaint alleges that prior to the start of the Class Period Anavex sponsored the Avatar Phase II and III (“Avatar”) clinical trials which investigated blarcamesine’s suitability as a treatment for adults with Rett syndrome. According to the study protocol it posted on “clinicaltrials.gov” (“ClinicalTrials”), an FDA-sponsored Web site which lists pertinent information about pharmaceutical trial research protocols, Anavex intended to use several “Primary Outcome Measures” and “Secondary Outcome Measures” to evaluate Avatar’s efficacy and overall clinical benefit. However, contrary to the protocol described on ClinicalTrials, when Anavex later reported its trial results, the Company revealed that it used alternative measures to assess the drug’s success. Analysts chided these statistical changes and the Company’s lack of candor regarding outcome changes.
After the Company announced its Avatar results, AVXL shares lost ground. Shares closed at $13.08 on January 31, 2022 and at $10.55 on February 2, 2022, a 19.3% decline.
Notwithstanding the backlash it received from the market and the substantial market capitalization losses, the Complaint further alleges, Anavex pulled the same sleight of hand with its “Excellence” Phase II/Phase III study, which investigated blarcamesine as treatment for pediatric Rett syndrome patients.
On January 2, 2024, the Company announced the Excellence study results. The Company used the “MMRM” method, a statistical method not used in the Avatar study, to analyze the data. The Excellence study failed to achieve statistical significance on all but one measure.
On this news, Anavex’s stock price fell from $9.31 per share on December 29, 2023, to $6.05 per share on January 2, 2024, a 35% decline in one trading day.
What’s Next?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/AVXL or you may contact Peretz Bronstein, Esq. or his Law Clerk and Client Relations Manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in Anavex you have until May 13, 2024, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman:
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Nathanson
332-239-2660 | [email protected]
SOURCE Bronstein, Gewirtz & Grossman, LLC
