SAN DIEGO (Legal Newsline) – A shareholder in a San Diego-based biopharmaceutical company alleges he purchased stock at artificially inflated prices.
Charles R. Stone II filed a complaint on behalf of himself and all persons similarly situated in the U.S. District Court for the Southern District of California against Acadia Pharmaceuticals Inc., Stephen R. Davis and Todd S. Young alleging violation of federal securities laws.
According to the complaint, the plaintiff alleges that on Sept. 29 and Oct. 5, 2017, he acquired shares of Acadia at artificially inflated prices and has been damaged by the revelation of the company’s material misrepresentations and material omissions.
The suit states that the company's drug Nuplazid, used for the treatment of hallucinations and delusions associated with Parkinson's disease psychosis, was approved by the Food and Drug Administration in 2016. The suit states after an April report by CNN on a report of physician's concerns about the drug, stock prices fell. The plaintiff alleges stock prices fell again after a July report by the Southern Investigative Reporting Foundation.
The plaintiff holds Acadia Pharmaceuticals Inc., Davis and Young responsible because defendants Davis and Young allegedly disseminated or approved false statements and employed devices or schemes to defraud.
The plaintiff requests a trial by jury and seeks a declaration that defendants violated the Securities Exchange Act, compensatory damages in favor of in an amount to be proven at trial, prejudgment and post-judgment interests, costs and expenses in this litigation, including reasonable attorneys’ fees and experts’ fees and other costs and disbursements; and other relief as the court may deem just and proper. He is represented by Danielle S. Myers of Robbins Geller Rudman & Dowd LLP in San Diego, California and Jacob A. Walker of Block & Leviton LLP in Boston, Massachusetts.
U.S. District Court for the Southern District of California case number 3:18-cv-01672-LAB-JMA