Robbins Arroyo LLP: Complaint Alleges that Adamas Pharmaceuticals Inc. (ADMS) Misled Shareholders
SAN DIEGO & EMERYVILLE, Calif.--(BUSINESS WIRE)--May 23, 2019--
Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Adamas Pharmaceuticals Inc. (NASDAQ: ADMS) filed a class action complaint against the company for alleged violations of the Securities and Exchange Act of 1933 pursuant to the company’s January 2018 secondary public offering (“SPO”). Adamas is a commercial stage pharmaceutical company that specializes in developing drug treatment therapies for chronic neurologic disorders. Adamas’s primary product is amantadine, also known as GOCOVRI and formerly referred to as ADS-5102.
View this information on the law firm’s Shareholder Rights Blog:
Adamas Accused of Inflating its SPO Price
According to the complaint, before launching Gocovri, Adamas knew it faced significant roadblocks that would dramatically reduce its ability to sell the drug, yet did not inform—and actively misled—the market about this problem. Adamas failed to disclose known risks and trends that impacted the company before, during, and after the SPO. Therefore, when Adamas held its SPO in January 2018, it was able to offer its stock at $41.50 per share for gross proceeds of $134 million. In October 2018, Merrill Lynch released a study that cast serious doubt on Gocovri’s ability to achieve a sizeable market share, and highlighted a number of factors that made clear how Adamas omitted critical information. In March 2019, Adamas walked-back prior growth estimates and refused to make further predictions about Gocovri’s ability to achieve a sizeable market share. On this news, Adamas’s stock fell 33% to $8.16 per share, a decline of over 80% in the approximate year following the SPO.
Adamas Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190523005842/en/
CONTACT: Leo Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San Diego, CA 92122
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
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PUB: 05/23/2019 05:44 PM/DISC: 05/23/2019 05:44 PM