Annovis Bio Embroiled In Class Action After It Allegedly Made False Statements About Its Ongoing Alzheimer’s Drug Clinical Trials
Disappointed investors are suing drug company Annovis Bio, Inc. in a class action lawsuit after suffering financial losses due to the company’s false claims about the progress of its Alzheimer’s medication.
Annovis Bio Sued By Its Investors
Filed in a Pennsylvania court, the Annovis Bio SEC Alzheimer’s Class Action Lawsuit is a case raised against the drug maker Annovis Bio, Inc. and other defendants by an aggrieved investor.
Pushed forward by complainant Obed Moroni Carrillo Cruz, the class action argues that the pharmaceutical company ended up inflicting harm to its investors after it allegedly made positive statements about the current status of its Alzheimer’s research involving a drug still under development.
Cruz details that the company has made positive statements about the clinical trials being conducted involving Alzheimer’s patients. However, the truth is that the participating patients’ results were not exhibiting any significant statistical improvement in their conditions – an exact opposite to the statements made by Annovis Bio and its top management.
Annovis Bio is conducting a Phase2a clinical research study regarding the efficacy and safety of an experimental medicine called ANVS401. The said drug is intended by the company to aid people with Alzheimer’s, Alzheimer’s in Down syndrome, and Parkinson’s disease.
As soon as the truth came out, the company’s stock performance suffered immensely. It is believed that company investors had to weather through a 60% loss in stock value. This translates into massive financial losses investors have to deal with.
The company tried to do damage control by releasing a follow-up press release to try to paint the current situation in a more positive light; however, instead of helping the company’s stock price to improve, it had the opposite effect.
Annovis Bio’s alleged misrepresentations and subsequent botched attempts are said to have violated different provisions of the Securities and Exchange Act.
The Annovis Bio SEC Alzheimer’s Class Action Lawsuit is looking to form and represent a Class group of company investors nationwide who bought Annovis Bio securities while believing the company’s false statements between the 21st of May 2021 and the 28th of July 2021.
Cruz wants the drug company to be held accountable for its actions ranging from making misleading and untrue pronouncements regarding the status of its ongoing clinical trials to not providing its shareholders crucial information about the business’ actual prospects, operations data, and the like.
About The Company
Annovis Bio, Inc., or simply Annovis Bio, is a pharmaceutical player focused on creating a drug that would treat different neurological ailments, including Alzheimer’s disease, Parkinson’s disease, and others. Based in Berwyn, Pennsylvania, the company is headed by its CEO Maria L. Maccecchini.
Editor’s Note on Annovis Bio SEC Alzheimer’s Class Action Lawsuit:
This class action news is aimed to provide you with information about the litigation filed against drug player Annovis Bio after it allegedly made materially false reports about the status of its Alzheimer’s drug’s clinical studies. Similarly, we also recommend you read the UnitedHealthcare Anesthesia class action lawsuit.
Case Name(s) & No.(s): Obed Moroni Carrillo Cruz v. Annovis Bio, Inc., et al.; Case No.: 4:21-cv-06770
Jurisdiction: United States (U.S.) District Court for the Eastern District of Pennsylvania
Allegation(s): Annovis Bio, Inc. violated the law and hurt its investors’ best interests with its misdeeds.
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