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ADMS.US
id: 1128

Adamas Pharmaceuticals (ADMS) $4.65 Million Shareholder Settlement

N.D. California
Court
4:19-cv-08051
Case number
08 Aug 2017
Class period Start
04 Mar 2019
Class period End
Adamas (ADMS) has agreed to settle $4.65 million with investors to resolve claims regarding the overstatement of their lead product's prospects.

Case Details:

On March 4, 2019, Adamas revised GOCOVRI's growth estimates, warned of prescription slowdown, and didn't predict market share.

Following the news, $ADMS dropped over 32% the next day, causing investor losses.

On September 30, 2019, an analyst downgraded Adamas due to coverage issues for GOCOVRI and anticipated reimbursement challenges with generic Ampyra.

Following this news, $ADMS dropped over 42% by October 3, 2019.

Based on these events, Adamas was accused of the following:
  • They didn't reveal that insurers excluded GOCOVRI from prescription lists.
  • The rise in GOCOVRI prescriptions wasn't due to its effectiveness, resulting in false financial statements.
Adamas has now decided to end all the allegations related to the financial misrepresentation and overstating GOCOVRI prospects and pay a $4.65M settlement to investors.

Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.27
Filing date
10 December 2019
Plaintiffs
Ralph Martinez
Attorneys
Glancy Prongay & Murray LLP
Defendants
Gregory T. Went, Alfred G. Merriweather, Richard A. King, Rajiv Patni, Vijay Shreedhar
Judge
Hon. Jeffrey S. White
Administrator
Strategic Claims Services
Settlement agreement date
2024-03-04
Trades matching type
FIFO
+$4,650,000
Total Settlement Amount

Frequently Asked Questions

Adamas Pharmaceuticals Inc

Adamas Pharmaceuticals, Inc. focuses on the discovery, development, and commercialization of medicines for patients suffering from chronic neurologic disorders in the United States. It offers GOCOV...

    Ticker
    ADMS.US
    ISIN
    US00548A1060
    CIK
    1328143
    Sector
    Healthcare
    Industry
    Drug Manufacturers - Specialty & Generic
    Country
    USA
    Address
    1900 Powell Street, EmeryVille, CA, United States, 94608