Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Annovis Bio Alzheimer’s Drug Trial Class Action Lawsuit Overview:
- Who: Obed Moroni Carrillo Cruz filed a class action lawsuit against Annovis Bio, Inc.
- Why: Plaintiff alleges Annovis Bio misled investors about the success of its Alzheimer’s drug trial, causing them to suffer significant losses in the stock market once the truth came out.
- Where: The class action lawsuit was filed in Pennsylvania federal court.
Annovis Bio, Inc. misled investors by making falsely positive claims while failing to disclose that Alzheimer’s patients participating in a Phase 2a clinical drug trial were not showing significant statistical improvement, a new class action lawsuit alleges.
Plaintiff Obed Moroni Carrillo Cruz claims the share price of Annovis Bio plummeted 60% once the truth came out, causing shareholders who had believed the company’s previously positive statement about the trial to suffer significant losses.
Cruz wants to represent a nationwide Class of consumers who purchased or otherwise acquired Annovis securities between the period of May 21, 2021 and July 28, 2021.
Cruz claims Annovis committed federal securities law violations by making false and misleading statements about the success of the drug trial and failing to disclose material adverse facts related to the company’s business, operations, and prospects.
Annovis, a clinical stage pharmaceutical company, was conducting Phase 2a clinical studies for a neurodegeneration therapeutic drug called ANVS401, meant to help people suffering from Alzheimer’s disease, Parkinson’s disease, and Alzheimer’s disease in Down syndrome, according to the class action lawsuit.
Annovis Bio Lied About the Success of Alzheimer’s Drug in Clinical Trial, a New Class Action Lawsuit Claims
Cruz says Annovis issued a press release on May 21, 2021 saying, in part, that “patients treated with ANVS401 for 25 days showed statistically significant cognitive improvement as measured by the Alzheimer’s Disease Assessment Scale–Cognitive Subscale.”
Cruz claims the press release was misleading and failed to disclose to investors that the drug had not shown statistically significant results across two patient populations.
The truth that the drug trial was not going as well as Annovis’ claimed finally came out in a press release sent out by the company on July 28, which caused its stock to drop by more than $65, according to the class action lawsuit.
Annovis’ subsequent attempts to explain its findings and frame them in a more positive light did not help its stock price recover, says Cruz, who alleges the company ultimately violated Section 10(b), 10b-5, and Section 20(a) of The Securities Exchange Act.
Cruz is demanding a jury trial and seeking relief in the form of compensatory damages for himself and all Class Members.
A similar class action lawsuit was filed this month by investors who alleged Spectrum Pharmaceuticals failed to disclose adverse facts about the efficacy of its white blood cell-stimulating drug, Rolontis.
Did you invest in Annovis Bio, Inc. and lose money after the results of its Phase 2a trials became public? Let us know in the comments!
The plaintiff is represented by Jacob A. Goldberg and Gonen Haklay of The Rosen Law Firm, P.A., and Jeremy A. Lieberman and J. Alexander Hood II of Pomerantz LLP.
The Annovis Bio Class Action Lawsuit is Cruz v. Annovis Bio, Inc., et al., Case No. 4:21-cv-06770, in the U.S. District Court for the Eastern District of Pennsylvania.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
