On August 10, 2017, Pomerantz LLP was appointed co-lead counsel in a class action lawsuit against Neurotrope, Inc. (“Neurotrope” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 17-cv-04313, is on behalf of a class consisting of investors who purchased or otherwise acquired Neurotrope securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
Neurotrope is a clinical stage biopharmaceutical company specializing in the development of therapeutics to treat neurodegenerative diseases, including Alzheimer’s disease (“Alzheimer” or “AD”).
The complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements, as well as failed to disclose material information concerning the efficacy of its lead product candidate, Bryostatin-1. As a result of the foregoing, Defendants’ statements about Neurotrope’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On May 1, 2017, Neurotrope issued a press release announcing “positive top-line results” of the Company’s pivotal Phase 2b trials of Bryostatin. Defendant Daniel Alkon, Neurotrope’s President and Chief Scientific Officer, characterized the results as showing “improvement in patients with moderate to severe Alzheimer’s disease.” However, the underlying trial data flatly contradicted Neurotrope’s representations of the results as positive. First, Neurotrope misleadingly omitted any statement pertaining to the efficacy of the 40 microgram dose with regard to either the primary or secondary endpoints. Moreover, the top-line data relating to 20 microgram dose of Bryostatin failed to produce results that were statistically significant.
On this news, Neurotrope’s share price fell $11.84, or 62.95%, to close at $6.97 on May 1, 2017, on heavy trading volume.