Shareholder Alert: Robbins LLP Announces Adamas Pharmaceuticals, Inc. (ADMS) Sued for Misleading Shareholders

Dec 12, 2019 08:43 pm
SAN DIEGO & EMERYVILLE, Calif. -- 

Shareholder rights law firm Robbins LLP announces that a purchaser of Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between August 8, 2017 and September 30, 2019. Adamas is a commercial stage pharmaceutical company that specializes in developing drug treatment therapies for chronic neurologic disorders. Adamas' primary product is GOCOVRI.

If you suffered a loss as a result of Adamas' misconduct, click here.

Adamas Pharmaceuticals, Inc. (ADMS) Accused of Misleading Shareholders

According to the complaint, throughout the relevant period, Adamas consistently assured investors of insurer support for its drug GOCOVRI, touting that "[Adamas] is seeing prescription fulfillment across most every plan" and "the vast majority of plans give [Adamas] good support for reimbursement for GOCOVRI." However, on October 5, 2018, an analyst at Bank of America/Merill Lynch downgraded Adamas, revealing a survey of doctors showed a higher-than-expected dropout rate for GOCOVRI due to high cost and difficulty in securing prior authorization from payers. Then, on March 4, 2019, Adamas revealed during a conference call that the Company was rescinding its previous prescription growth estimates for GOCOVRI and warned of a continued slowdown in GOCOVRI prescriptions. Finally, on September 20, 2019, another analyst from Bank of America/Merill Lynch lowered its rating for Adamas shares to "underperform," citing the exclusion of GOCOVRI on a number of national formularies and anticipated reimbursement hurdles as reasons. Since this news, the stock has declined almost 73% from its October 5, 2018 closing price of $23.81, currently trading at around $6.50.

Adamas Pharmaceuticals, Inc. (ADMS) Shareholders Have Legal Options

Contact us to learn more:
Leo Kandinov
(800) 350-6003
[email protected]
Shareholder Information Form

Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.

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Leo Kandinov
Robbins LLP
5040 Shoreham Place
San Diego, CA 92122
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsllp.com