Wolf Haldenstein Adler Freeman & Herz LLP is investigating potential securities claims against BioXcel Therapeutics Inc. (NASDAQ: BTAI)
NEW YORK, NY – July 5, 2023 – Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”) announces that it is investigating claims on behalf of investors of BioXcel Therapeutics Inc. (NASDAQ: BTAI) (“BioXcel” or the “Company”) for violations of the securities laws.
All investors who purchased shares and incurred losses are advised to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774.
BioXcel is a biopharmaceutical company utilizing artificial intelligence (“AI”) approaches to develop transformative medicines in neuroscience and immuno-oncology. The Company is focused on utilizing cutting-edge technology and innovative research to develop high-value therapeutics aimed at transforming patients’ lives. Among its products is a dissolvable tablet aimed at reducing agitation symptoms in Alzheimer’s patients.
On June 28, 2023, the Company announced that its treatment cut agitation symptoms by 39% relative to a placebo in patients with mild to moderate dementia. However, in an SEC filing on the same date, BioXcel disclosed that it was investigating a fraudulent email chain from a clinical site that enrolled 40% of the patients in the study. According to the disclosure, the lead investigator in BioXcel’s study may have fabricated an email chain suggesting the site reported a serious side effect in a timely manner. The Company later found the side effect occurred in a placebo recipient. An FDA inspection also found issues related to informed consent and recorded case histories for some patients.
In an interview with Investor’s Business Daily, Company CEO Vimal Mehta stated that “[t]his was a reporting requirement because we found something which was unfortunate and we wanted to make sure we provided the full disclosure around it.” Mehta explained that “all the work we have done in terms of our own audit, our processes, our data that we are reporting, we wouldn’t report it if we didn’t have the confidence that we believe in it.” Mehta further explained that the fraud investigation will not change BioXcel’s timeline for the tablet in the Alzheiner’s population.
On this news, the Company’s stock price plummeted 63.8% to close at $6.39.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774