Sage Therapeutics Investor Class Action Details Explained
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Class Action Lawsuit Filed for Sage Therapeutics Investors
The Law Offices of Frank R. Cruz has recently announced the initiation of a class action lawsuit for investors in Sage Therapeutics, Inc. (SAGE) who purchased or acquired securities between April 12, 2021, and July 23, 2024. This legal action aims to address the concerns arising from significant declines in Sage's stock price tied to misleading statements about the company's drug approvals and clinical trials.
Sage Therapeutics and Its Clinical Developments
Sage Therapeutics has been at the forefront of developing treatments for mental health conditions. The company focuses on drugs designed to treat postpartum depression and major depressive disorder. Unfortunately, in recent months, the company's progress has faced hurdles. For example, the New Drug Application for zuranolone received mixed feedback from the U.S. Food and Drug Administration (FDA), leading to a sharp decline in share value that hurt many investors.
Impact of FDA Approval and Stock Price Drop
On August 4, 2023, Sage disclosed that while the FDA approved the zuranolone application for postpartum depression, they did not approve it for major depressive disorder. This led to a dramatic stock price drop of $19.35, which is a staggering 53.6%, closing at $16.75 per share shortly after the announcement. Such significant fluctuations highlight the volatility of biotech stocks tied to regulatory approvals and clinical trial results.
Ongoing Trials and Their Results
Further complicating matters, Sage announced on April 17, 2024, that a Phase 2 study for SAGE-718, aimed at treating mild cognitive impairment caused by Parkinson's disease, failed to achieve its primary endpoints. This report caused another fall in share price by $3.06, equivalent to a 19.6% drop, closing at $12.57. Clearly, these repetitive disappointments eroded investor confidence.
Issues Related to Sage-324 Study
More recently, Sage Therapeutics revealed results from a Phase 2 study concerning Sage-324, intended for essential tremor treatment. Unfortunately, it also showcased disappointing outcomes, resulting in a 20.6% drop in stock price down to $10.38 after announcing they would not continue clinical development of this drug. These revelations raised substantial concerns about the company's pipeline and prospects.
Allegations in the Class Action Lawsuit
The class action suit claims that during the class period, executives at Sage Therapeutics misled investors by making false statements and omitting crucial adverse information regarding the company’s operations and future growth. Investors were not made aware of the likelihood that zuranolone would not receive the desired FDA approval for MDD. Moreover, clinical trials for drugs SAGE-718 and SAGE-324 were reportedly not yielding the expected results.
Participation and Legal Rights of Investors
Investors who suffered losses due to these developments are encouraged to participate in the class action lawsuit. If you purchased Sage securities during the specified period, you may be able to serve as a lead plaintiff, with the deadline for filings set for October 28, 2024. It’s essential to consult with legal counsel to understand your rights and options to secure potential benefits from this action.
Contact Information for Further Inquiries
For individuals seeking more information regarding this lawsuit or to discuss their rights as investors, they can reach out to Frank R. Cruz at The Law Offices of Frank R. Cruz. The office is located at 2121 Avenue of the Stars, Suite 800, Los Angeles, CA 90067, and inquiries can be made through the number 310-914-5007 or by emailing info@frankcruzlaw.com. Prospective participants should provide their details, including mailing address and shareholding information.
Frequently Asked Questions
What is the class action lawsuit about?
The lawsuit is about addressing claims from investors who suffered losses in Sage Therapeutics securities due to misleading statements regarding drug effectiveness and regulatory approvals.
Who can participate in the class action?
Any investor who purchased Sage shares during the specified class period between April 12, 2021, and July 23, 2024, may participate.
What are the allegations against Sage Therapeutics?
The allegations include making materially false statements and failing to disclose significant adverse facts about the company’s business and drug development processes.
When is the deadline to file a lead plaintiff motion?
The deadline to file a lead plaintiff motion is October 28, 2024.
How can I contact The Law Offices of Frank R. Cruz?
You can contact them at 310-914-5007 or email info@frankcruzlaw.com for further inquiries regarding the lawsuit.
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