Are you a former employee of ACADIA Pharmaceuticals, Inc. (ACAD) and own stock in the company? Robbins LLP is investigating breaches of fiduciary duty by the officers and board of directors of ACAD.
Acadia Pharmaceuticals Inc. (ACAD) Class Action Survives Motion to Dismiss
On June 2, 2020, U.S. District Court Judge Anthony J. Battaglia denied in part Acadia ‘s motion to dismiss plaintiffs’ complaint alleging the Company made false and misleading statements about its lead drug candidate NUPLAZID, paving the way for litigation to proceed. According to the complaint, on April 29, 2016, Acadia Pharmaceuticals, Inc. issued a press release announcing that the FDA had approved NUPLAZID. To promote the product, Acadia claimed it was utilizing “initiatives including speaker programs, media and digital campaigns, and symposia at major medical meetings” and touted in its third quarter financial results that ” very pleased with the launch and are gratified by the positive feedback received from physicians, patients, and caregivers on NUPLAZID.” Acadia maintained its positive statements on NUPLAZID until April 9, 2018, when CNN reported that “hysicians, medical researchers and other experts … worried that had been approved too quickly, based on too little evidence that it was safe or effective. And given these mounting reports of deaths… more need to be done to assess Nuplazid’s true risks.” On April 25, 2018, CNN reported that the FDA was re-examining the safety of NUPLAZID. Finally, on July 9, 2018, the Southern Investigative Reporting Foundation (“SIRF”) reported that “evidence is mounting that something is horribly wrong with Acadia’s sole drug, Nuplazid” and that “Acadia has accomplished its growth in ways that have attracted intense regulatory scrutiny for other drug companies” including “dispensing wads of cash to doctors to incentivize prescription writing and downplaying mounting reports of patient deaths.” Following these disclosures, Acadia’s stock price dropped approximately 25%.