Stockholders v Axonyx Inc.
Shareholders Sue Axonyx Inc. Due To Material Misrepresentations
A class action has been filed against Axonyx Inc. (NasdaqSC:AXYX), and certain of its officers and directors by stockholders who purchased the company's common stock between June 26th, 2003 and February 4th, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. Axonyx Inc. is engaged in the business of acquiring and developing novel post-discovery central nervous system drug candidates, primarily in areas of memory and cognition.
According to a press release dated February 15, 2005, a class action lawsuit was filed on behalf of all securities purchasers of Axonyx, Inc.
The complaint charges Axonyx and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's only viable drug candidate, Phenserine, a acetylcholinesterase ("AChE") inhibitor, failed to curb symptoms of Alzheimer's disease; (2) that the Company knew or recklessly disregarded the fact that Phenserine failed to partially block the effects of AChE, an enzyme that breaks down a neurotransmitter in the brain important for memory and cognition; (3) that as a consequence of the foregoing, the Company would not be able to commercialize Phenserine, currently its only potential source of revenue; and (4) that as a result the Company's positive statements about the development and potential approval of Phenserine were lacking in all reasonable basis when made.
Further, on or around February 7, 2005, Axonyx announced that Phenserine did not achieve significant efficacy in Phase III Alzheimer's Disease trial. The news shocked the market. As a result, shares of Axonyx fell $3.04 per share, or 62.68 percent, on February 7, 2005, to close at $1.81 per share.
If you bought Axonyx Inc. securities between June 26th, 2003 and February 4th, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.
