Robbins Arroyo LLP: Anavex Life Sciences Corp. (AVXL) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed in the U.S. District Court for the Southern District of New York. The complaint alleges that officers and directors of Anavex Life Sciences Corp. (NASDAQCM: AVXL) violated the Securities Exchange Act of 1934 between May 17, 2013 and December 28, 2015, by making materially false and misleading statements about Anavex’s business prospects. Anavex, a clinical stage biopharmaceutical company, engages in the development of drug candidates for the treatment of Alzheimer’s disease, other central nervous system diseases, pain, and various cancers.
Anavex Accused of Artificially Inflating Its Share Price
According to the complaint, Anavex maintained a habit of using paid promotional activity to inflate its share price. On November 11, 2015, Seeking Alpha published a report noting that Anavex’s stock price had steadily declined from 2006 until 2013, when a new episode of paid promotional activity took place. The British Columbia Securities Commission ordered the suspension of trading in Anavex’s shares following unusual activity and reports of paid promotions. Then, on December 29, 2015, Anavex disclosed in its Form 10-K that it had received a subpoena from the U.S. Securities and Exchange Commission on December 22, 2015, citing the recent unusual activity in the market for the company’s shares.
More information was revealed about Anavex’s deceptive practices on December 30, 2015, when Seeking Alpha published another report entitled, “Anavex: A Regulatory Target Damaged By Incriminating Evidence.” This report alleges that Anavex owes some of its newfound popularity to an admirable review published by Kanak Kanti De, a so-called “doctor” who developed a strong following on financial websites by portraying himself as a retired medical practitioner, with an “M.D.” after his name. The report further alleges that De’s credentials are inflated since he was previously described online as “a veteran college principal with a Ph.D. in English,” not a medical doctor. On this news, Anavex stock fell $0.78 per share, or 12.42%, to close at $5.50 per share on December 30, 2015.
Anavex Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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