Acorda Therapeutics, Inc. (Nasdaq: ACOR)
A class action has been commenced on behalf of purchasers of Acorda Therapeutics, Inc. (Nasdaq: ACOR) common stock between April 18, 2016 and November 14, 2017 (the “Class Period”).
The complaint charges Acorda and certain of its current and former officers with violations of the Securities Exchange Act of 1934. Acorda is a biotechnology company with a focus on the identification, development and commercialization of therapies for neurological disorders.
On January 19, 2016, Acorda announced an agreement to acquire Biotie Therapies Corporation (“Biotie”) for approximately $363 million (the “Biotie Acquisition”). In its press release announcing the Biotie Acquisition, Acorda advised investors that, among other things, the Company “will obtain worldwide rights to tozadenant, an oral adenosine A2a receptor antagonist currently in Phase 3 development in Parkinson’s disease (PD),” which was “a compelling opportunity with the potential market exclusivity to 2030.” On April 18, 2016, Acorda acquired approximately 93% of the fully diluted capital stock of Biotie, and in September 2016, completed the Biotie Acquisition.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and prospects. Specifically, defendants failed to disclose that there were significant undisclosed safety risks with tozadenant and, accordingly, the Company had overstated tozadenant’s approval prospects and commercial viability and the benefits of the Biotie Acquisition. As a result of defendants’ false statements and/or omissions, Acorda securities traded at artificially inflated prices during the Class Period, with its stock reaching a high of close to $30 per share.
Then on November 15, 2017, Acorda issued an update on the tozadenant development program, disclosing the deaths of several patients in its phase 3 study of the drug. The Company stated that it had increased the frequency of blood cell monitoring for participants in the study in response to cases of possibly drug-related agranulocytosis, the absence of white blood cells that fight infection, “in some cases associated with sepsis and death.” Acorda further stated that “[t]here have been seven cases of sepsis, all in the tozadenant groups, five of which were fatal.” Acorda advised investors that it had paused new enrollment in the drug’s long-term safety studies pending further discussion with the independent Data Safety Monitoring Board and the U.S. Food and Drug Administration. On this news, Acorda’s share price fell $11.20 per share, or nearly 40%, to close at $17 per share on November 15, 2017.
If you are a current shareholder and purchased stock between April 18, 2016 and November 14, 2017, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
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