Lawsuit Filed Against Amylyx Pharmaceuticals for Securities Violations
New York – Bernstein Liebhard LLP, a leading law firm specializing in securities litigation, has filed a class action lawsuit against Amylyx Pharmaceuticals, Inc. (NASDAQ: AMLX) on behalf of investors who purchased the company’s securities between November 11, 2022, and November 8, 2023. The lawsuit, lodged in the United States District Court for the Southern District of New York, alleges that the biotechnology firm, which focuses on treatments for neurodegenerative diseases, violated the Securities Exchange Act of 1934.
According to the complaint, Amylyx is accused of overstating the commercial prospects and prescription rate of its drug RELYVRIO, which was approved by the FDA in September 2022 for treating adults with amyotrophic lateral sclerosis (ALS) in the United States. The lawsuit claims that the company failed to disclose the decreasing rate at which new patients were starting treatment and the increased discontinuation rate six months after initiating RELYVRIO.
The allegations came to light when Amylyx released its third-quarter financial results on November 9, 2023, reporting a GAAP earnings per share of $0.30, which missed consensus estimates by $0.12. During a conference call, management revealed a slowdown in net adds for RELYVRIO, primarily due to increased discontinuations. Following these revelations, Amylyx’s stock price dropped by 31.89%, closing at $12.26 per share on the same day.
Investors who suffered losses from their Amylyx securities during the specified class period may discuss their legal rights and options by contacting Bernstein Liebhard LLP. The deadline for investors to move the court for lead plaintiff status is April 9, 2024. However, they may remain an absent class member if they choose not to take action.
Bernstein Liebhard LLP has a history of recovering over $3.5 billion for its clients since 1993 and has been recognized by The National Law Journal and The Legal 500 for its litigation achievements.
Analyst comment
Negative news. The lawsuit and allegations against Amylyx Pharmaceuticals for securities violations could harm investor confidence and future prospects. The stock price drop of 31.89% indicates a negative reaction in the market. It is likely that the company will face increased scrutiny and potential legal consequences, impacting their financial performance.
