Legal Action Filed for Investors of Sage Therapeutics, Inc. (SAGE)
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Legal Class Action for Sage Therapeutics Investors
The Law Offices of Frank R. Cruz has taken a significant step on behalf of investors in Sage Therapeutics, Inc. (NASDAQ: SAGE). A class action lawsuit has been initiated for individuals and entities that acquired securities related to this prominent biotechnology company. This lawsuit is particularly aimed at those who purchased these securities during the specified Class Period.
Understanding the Class Period
The Class Period for this lawsuit ranges from April 12, 2021, to July 23, 2024. Investors are encouraged to pay close attention to this timeline, as it identifies when the alleged misleading statements regarding the company's performance and prospects were made. Shareholders who suffered losses during this timeframe are prompted to take action by filing a lead plaintiff motion before the deadline.
Recent Developments Affecting Sage Therapeutics
Significant events have unfolded that impacted Sage's stock performance and raised concerns among investors. For instance, on August 4, 2023, Sage revealed that it had received approval from the U.S. Food and Drug Administration (FDA) for its New Drug Application for zuranolone, but only for treating postpartum depression (PPD). Unfortunately, the application for treating major depressive disorder (MDD) received a Complete Response Letter, indicating that the FDA needed more substantial evidence before granting approval. This announcement led to a sharp decline in Sage's stock, which plummeted by 53.6%, closing at $16.75 per share on August 7, 2023.
Subsequent Disclosures Impacting Stock Value
On April 17, 2024, Sage disclosed that its Phase 2 study of SAGE-718 for mild cognitive impairment due to Parkinson’s Disease did not meet its primary endpoint. Due to these disappointing results, the company announced it would halt further development of SAGE-718 in this area, leading to a further dip of 19.6% in its stock price.
Even more setbacks followed; on July 24, 2024, Sage announced that a Phase 2 study involving Sage-324 for essential tremor produced unsatisfactory results, devoid of any significant differences compared to the placebo. This news resulted in another drop of 20.6% in the stock price, closing at $10.38 per share, exacerbating the financial injury to shareholders.
Allegations Within the Class Action Lawsuit
The class action complaint asserts that throughout the Class Period, the defendants, including company executives, allegedly misled shareholders by making materially false statements regarding the effectiveness and potential marketability of their products. The specifics of these claims suggest that the alleged misinformation regarding zuranolone, SAGE-718, and SAGE-324 ultimately inflated the company’s stock price in a misleading manner.
More specifically, the lawsuits accuse defendants of suggesting that zuranolone would likely receive FDA approval for MDD, which they claimed it would not be. These miscommunications are believed to have significantly misrepresented the clinical and commercial prospects of other key products, prompting investor action.
Investor Participation in the Class Action
If you are a shareholder who purchased Sage Therapeutics shares during the Class Period, it is crucial for you to act swiftly. The deadline for moving the Court to appoint you as the lead plaintiff is October 28, 2024. Potential class members are not required to take any immediate action but may choose to retain legal counsel or remain absent from the proceedings.
Contact Information for Interested Investors
For those who have further inquiries about this class action or seek more information regarding potential claims, Frank R. Cruz and his dedicated team at The Law Offices of Frank R. Cruz are ready to assist. Investors can contact the office located at 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067, by phone at 310-914-5007. Individuals can also send inquiries via email, ensuring to include their name, mailing address, phone number, and details on the shares they purchased.
Frequently Asked Questions
What is the purpose of the class action lawsuit?
The class action lawsuit aims to represent investors who purchased Sage Therapeutics securities during the Class Period and suffered financial losses.
Who can participate in this lawsuit?
Any individual or entity that acquired Sage Therapeutics shares within the specified period can potentially participate in the class action.
What are the allegations against Sage Therapeutics?
The lawsuit alleges that the company made materially false statements concerning its products and misled investors about their effectiveness and regulatory approval prospects.
When is the deadline to file a lead plaintiff motion?
The deadline to file a lead plaintiff motion is October 28, 2024.
How can investors get more information regarding the lawsuit?
Investors may contact The Law Offices of Frank R. Cruz for information about the lawsuit or consult with their legal counsel for guidance.
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