DENVER–(BUSINESS WIRE)–Shuman Glenn & Stecker announces that it is investigating potential shareholder claims against certain officers and directors of Acadia Pharmaceuticals, Inc. (“Acadia” or the “Company”) (NYSE: ACAD). Acadia is a biopharmaceutical company focusing on the development and commercialization of medicines to address central nervous system disorders. The Company’s lead drug, NUPLAZID, was approved in 2016 by the U.S. Food and Drug Administration (“FDA”) for treatment of hallucinations and delusions associated with Parkinson’s disease psychosis.
The Firm’s investigation relates to allegations in a securities fraud class action lawsuit against Acadia and certain of its senior officers in the U.S. District Court for the Southern District of California. The lawsuit alleges that the defendants failed to publicly disclose material facts, including: (i) adverse events, safety concerns, and mounting reports of deaths related to NUPLAZID post-commercialization, which raised the risk that the FDA would reconsider its approval of NUPLAZID and/or that industry watchdogs would warn against prescribing NUPLAZID; (ii) that Acadia undertook a campaign to pay off physicians to prescribe NUPLAZID; and (iii) that Acadia’s improper business practices exposed the Company to potential regulatory scrutiny. In a June 1, 2020 ruling denying in part the motion to dismiss the lawsuit, the federal judge determined that it had been sufficiently alleged that the defendants did not properly disclose the high mortality rate during testing for NUPLAZID or the payments of kickbacks to doctors who prescribed NUPLAZID.
On April 9, 2018, following a CNN report about mounting deaths associated with NUPLAZID, Acadia’s stock price fell by over 23% to close at $16.50 per share. After CNN subsequently reported on April 25, 2018 that the FDA was re-examining the safety of NUPLAZID, Acadia’s stock price fell again, by nearly 22% to close at $15.20 per share.
If you currently own Acadia common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Kip Shuman toll free at (866) 569-4531 or email Mr. Shuman at firstname.lastname@example.org.
Shuman Glenn & Stecker represents investors throughout the nation, concentrating its practice in stockholder litigation.