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ADMS.US
id: 1128

Adamas Pharmaceuticals (ADMS) $4.65 Million Shareholder Settlement

It is still possible to file a late claim. The court will decide whether to accept late claims or not.
N.D. California
Court
4:19-cv-08051
Case number
08/08/2017
Class period Start
03/04/2019
Class period End
08/28/2024
Claim deadline
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.

Case Status
Accepting Late Claims
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
12/10/2019
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
Court hearing date
08/09/2024
Exclusion deadline
08/09/2024
Objection deadline
08/09/2024
Attorney fee
$1,669,845
Trades matching type
FIFO
+$4,650,000
Cash Settlement Amount

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