ATHA.US
id: 683
Athira (ATHA) $10M IPO & SPO Settlement
It is still possible to file a late claim. The court will decide whether to accept late claims or not.
W.D. Washington
Court2:21-cv-00861
Case number17 Sept 2020
Class period Start17 Jun 2021
Class period End06 Sept 2024
Claim deadlineAthira Pharma, Inc. has agreed to a $10 million settlement with investors to resolve claims that the company misled them regarding research integrity. The lawsuit alleges that Athira's former CEO, Dr. Leen Kawas, improperly altered images in research papers, which were used to promote the company's scientific credibility and artificially inflate its stock price.
Outline
The lawsuit accuses Athira of making false statements and omitting material facts regarding its scientific research. These misrepresentations allegedly led to an artificial inflation of the company's stock price, causing significant financial losses for investors with the stock dropping nearly 39%.
Timeline
- September 17, 2020 - June 17, 2021: Athira publicly promoted the progress of its drug development pipeline, which relied heavily on research allegedly falsified by Dr. Kawas. The company's communications during this period boosted investor confidence, which in turn inflated the stock price.
- June 17, 2021: News broke that Dr. Kawas, Athira's CEO at the time, had altered images in research papers co-authored during her academic career. These papers were referenced in patent applications that Athira later licensed, casting doubt on the integrity of the company’s scientific foundation.
- June 18, 2021: Following the revelations, Athira's stock price plummeted approximately 39%, resulting in substantial investor losses.
Background
Athira Pharma is a biotech company that presented itself as a pioneer in the development of innovative treatments for neurodegenerative diseases. However, it was later discovered that the company's CEO had altered images in her research, raising serious questions about the company's scientific validity and ethics. This misrepresentation led to significant financial losses for investors, who were misled into believing in the robustness of Athira’s research and development.
What Can Investors Expect Now?
Athira has agreed to a $10 million settlement to resolve the claims associated with misleading investors about its research integrity.
Investors who suffered losses during the class period can file for a payout from the settlement fund. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management,
Investment Bank,
Service Provider
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.47
Filing date
25 June 2021
Plaintiffs
Wies Rafi, Antonio Bachaalani Nacif
Attorneys
Glancy Prongay & Murray LLP (Los Angeles, CA), Labaton Sucharow LLP (New York, NY), Rossi Vucinovich, P.C. (Seattle, WA)
Defendants
Kawas, Glenna Mileson, Joseph Edelman,
Judge
Hon. Thomas S. Zilly
Administrator
Strategic Claims Services
Settlement agreement date
2023-04-27
Trades matching type
FIFO
+$10,000,000
Cash Settlement Amount