INVESTOR ALERT: Class Action Lawsuit Against Alcobra, Ltd. Announced by Law Offices of Howard G. Smith
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Alcobra, Ltd. (“Alcobra” or the “Company”) (ADHD) between March 28, 2014 and November 14, 2014, inclusive (the “Class Period”). Alcobra is a biopharmaceutical company focused on the development and commercialization of proprietary drug candidates, including MDX for the treatment of attention deficit hyperactivity disorder (ADHD).
The lawsuit alleges that defendants made false and/or misleading statements and failed to disclose material adverse facts about the Company’s operations and financial prospects. Specifically, defendants misrepresented and/or failed to disclose that: (1) MDX did not show a statistical benefit over placebo until patients were removed from the Company’s analysis of the Phase III study; (2) the Company was presenting it analyses inconsistently, including post hoc analysis outside the original protocols; and (3), as a result of the foregoing, defendants’ statements about Alcobra’s business, operations and prospects, including statements about the clinical success of MDX, were false and misleading or lacked a reasonable basis.
On October 22, 2014, the Company announced that the MDX Phase III study did not demonstrate a statistically significant improvement in patient symptoms, stating in relevant part: “While a complete ITT analysis by ADHD subtypes is still ongoing…the magnitude of symptom improvement appears to be similar in all subtypes, and the Predominantly-Inattentive ADHD (PI-ADHD) subtype alone did not produce a statistically significant outcome.”
Then, on November 17, 2014, Alcobra announced that the Company plans to meet with the FDA and launch a second adult Phase III study in 2015. According to the Company, Alcobra is “currently evaluating changes to the design and monitoring of the second trial to control the unusually high placebo response and wide response variability observed in the first Phase III study.” Following this news, Alcobra shares declined 6%, or $0.21 per share, and declined an additional 6% per share the next day, to a closing price of $3.24 per share on November 18, 2014, on unusually heavy volume.
If you are a member of the Class described above, you have until January 19, 2015, to move the Court to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you suffered losses of $1 million or more and wish to learn more about this action, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to [email protected], or visit our website at http://www.howardsmithlaw.com.