Acadia Pharmaceuticals in the Hot Seat: Investors' Nuplazid Dreams vs. Alleged Deception
- Court Greenlights Class Action: A major legal battle is officially underway as a court certifies a class action lawsuit against Acadia Pharmaceuticals, Inc.
- Broken Promises Alleged: Investors accuse the company of misleading them about the expansion prospects of its key drug, Nuplazid, for dementia-related psychosis.
- Investors on Alert: The lawsuit covers individuals and entities who acquired Acadia common stock between September 9, 2019, and April 4, 20216.
The fight for accountability has reached a critical juncture. A U.S. District Court has certified a class action lawsuit against Acadia Pharmaceuticals, Inc. and certain individuals, thrusting the company’s communications about its flagship drug, pimavanserin (Nuplazid), into a harsh legal spotlight. The order, dated March 11, 2024, from Judge William Q. Hayes of the U.S. District Court for the Southern District of California (Case No. 3:21-cv-00762-WQH-MSB), means investors who believe they were wronged can now proceed collectively6.
At the heart of the storm are serious allegations: that Acadia made material misrepresentations and omissions concerning its supplemental New Drug Application (sNDA) for Nuplazid. This drug, first approved in 2016 for Parkinson's disease psychosis1, 2, was being positioned for a significant market expansion – treating dementia-related psychosis (DRP)7. Plaintiffs argue that Acadia painted an overly optimistic picture of the sNDA's progress, potentially inflating investor hopes and stock value, only for those hopes to be challenged by regulatory realities. These claims fall under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
Acadia and the other defendants vehemently deny all allegations of wrongdoing and any violation of securities laws.
For those who purchased or acquired Acadia common stock from September 9, 2019, through April 4, 2021 (inclusive), and suffered damages, your rights may be significantly affected. If you fall within this Class (with certain exclusions for defendants, company insiders, and related parties), you need to be aware. A detailed Notice of Pendency of Class Action is available. You can obtain copies by writing to the Notice Administrator at Acadia Securities Litigation, c/o A.B. Data, Ltd., P.O. Box 173110, Milwaukee, WI 53217, or by downloading it at www.ABData.com/AcadiaSecuritiesLitigation. For other inquiries, contact Class Counsel: Scott+Scott Attorneys at Law LLP, c/o Thomas L. Laughlin, IV, 156 South Main Street, Colchester, CT 06415, tel. (800) 404-7770.
Class members face a crucial decision: remain in the Class or opt out. Doing nothing means you'll be bound by all court rulings, win or lose. To be excluded, you must submit a request by the deadline specified in the detailed Notice. This is a pivotal moment for Acadia investors.
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