Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Adamas Pharmaceuticals, Cintas, Correvio Pharma, and Exelon and Encourages Investors to Contact the Firm
NEW YORK, Jan. 09, 2020 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, reminds investors that class action lawsuits have been commenced on behalf of stockholders of Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS), Cintas Corporation (NASDAQ: CTAS), Correvio Pharma Corp. (NASDAQ: CORV), and Exelon Corporation (NASDAQ: EXC). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Adamas Pharmaceuticals, Inc. (NASDAQ: ADMS)
Class Period: August 8, 2017 to September 30, 2019
Lead Plaintiff Deadline: February 10, 2020
Adamas’s primary product is GOCOVRI, an extended-release formulation of amantadine, which has been approved by the U.S. Food and Drug Administration for the treatment of levodopa-induced dyskinesia.
On March 4, 2019, during Adamas’s Q4 2018 conference call with investors, Adamas walked back its previous prescription growth estimates for GOCOVRI, warned of a continued slow-down in GOCOVRI prescriptions, and refused to make further predictions about GOCOVRI’s ability to achieve a sizeable market share.
On this news, Adamas’s stock fell $3.99 per share, or 32.84%, to close at $8.16 per share on March 5, 2019.
On September 30, 2019, Bank of America/Merrill Lynch analyst Tazeen Ahmad lowered its rating for Adamas shares to “Underperform” noting “existing overhangs for ADMS: (1) GOCOVRI coverage: a number of national formularies exclude GOCOVRI. We expect reimbursement hurdles in MSWI space especially with generic Ampyra launch.”
On this news, Adamas shares fell a further 42.83% from $7.05 per share on September 26 to $4.03 by October 3, 2019.
The complaint, filed on December 10, 2019, alleges that throughout the Class Period defendants made materially false and misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants made materially false and misleading statements about: (1) managed care’s acceptance of GOCOVRI; (2) the breadth of insurer coverage for GOCOVRI prescriptions; and (3) the impact of the Company’s commercialization efforts. In addition, defendants failed to disclose: (1) that health insurers were excluding GOCOVRI from their prescription formularies or requiring patients to use “step therapy” - i.e., making patients try immediate-release amantadine prior to covering GOCOVRI; (2) that the rapid increase in physicians prescribing GOCOVRI during the Class Period was not due to its efficacy; and (3) that, as a result of the foregoing, the Company’s financial statements and defendants’ statements about Adamas’s business, operations, and prospects, were materially false and misleading at all relevant times.
For more information on the Adamas class action go to: https://bespc.com/adms-2
Cintas Corporation (NASDAQ: CTAS)
Class Period: Match 6, 2017 to November 13, 2019
Lead Plaintiff Deadline: February 10, 2020
On November 13, 2019, Spruce Point Capital Management (“Spruce Point”) issued a report alleging, based on information from FOIA requests, that “Cintas’ Fire Protection Services was charged with fraud and is causing a public safety hazard by having workers conduct fire and safety inspections without proper licenses or permits, and falsifying inspections.” Spruce Point also alleged that management may have misreported revenue and expenses for G&K Services, Inc., which the Company had acquired in 2017 for $2.1 billion.
On this news, shares of Cintas fell $3.61 per share, to close at $255.24 per share on November 13, 2019.
The complaint, filed on December 12, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Cintas never tracked legacy margins following the G&K acquisition; (2) the Company has systematically provided guidance with which it would outperform (a “Beat and Raise” scheme); (3) undisclosed to the investing public, the Company has breached the law multiple times; (4) as a result of publicly known and undisclosed breaches of law, the Company’s Credit Agreement may be jeopardized; and (5) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. The lawsuit claims that when the truth was disclosed in the Spruce Point investment research report, investors suffered damages.
For more information on the Cintas class action go to: https://bespc.com/ctas
Correvio Pharma Corp. (NASDAQ: CORV)
Class Period: October 23, 2018 to December 5, 2019
Lead Plaintiff Deadline: February 10, 2020
Correvio is a specialty pharmaceutical company that engages in developing therapeutics worldwide. The Company’s portfolio of marketed brands comprise, among others, vernakalant IV, or Brinavess, for the rapid conversion of recent onset atrial fibrillation (“AF”) to sinus rhythm.
Earlier during Brinavess’s development, safety concerns led the U.S. Food and Drug Administration (“FDA”) to decline approval for Brinavess.
On October 23, 2018, Correvio announced its intention to resubmit a New Drug Application (“NDA”) for Brinavess to the FDA for recent onset AF (the “Resubmitted NDA”), which followed additional purported safety data the Company had accumulated, as well as discussions with the FDA regarding the drug’s potential regulatory path forward. The Company later announced on July 25, 2019, that the FDA had accepted the Resubmitted NDA.
On December 6, 2019, FDA staffers reviewing Brinavess announced that they did not believe that the drug’s benefits outweighed its risks. Specifically, the FDA noted that Brinavess was associated with “serious liabilities” including low blood pressure, irregular heartbeats in the lower heart chambers, and death.
On this news, Correvio’s stock price fell $0.86 per share, or 39.81%, to close at $1.30 per share on December 6, 2019.
Then, on December 10, 2019, during pre-market hours, the Nasdaq Stock Market (“NASDAQ”) suspended trading in Correvio securities in anticipation of the FDA’s Cardiovascular and Renal Drugs Advisory Committee’s (“RDAC”) review and discussion of the Resubmitted NDA. Finally, just before market-close that day, the RDAC voted 11-2 against approval of the Resubmitted NDA, noting that Brinavess’s benefit-risk profile was not adequate to support approval.
On this news, and after Correvio shares resumed trading on the NASDAQ, Correvio’s stock price fell $0.94 per share, or 67%, to close at $0.46 per share on December 11, 2019.
The complaint, filed on December 12, 2019, alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) the data supporting the Resubmitted NDA for Brinavess did not minimize the significant health and safety issues observed in connection with the drug’s original NDA; (2) the foregoing substantially diminished the likelihood that the U.S. Food and Drug Administration would approve the Resubmitted NDA; and (3) as a result, Correvio’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the Correvio class action go to: https://bespc.com/corv
Exelon Corporation (NASDAQ: EXC)
Class Period: February 9, 2019 to November 1, 2019
Lead Plaintiff Deadline: February 14, 2020
Exelon owns various “Utility Registrants”, including, among other entities, Commonwealth Edison (“ComEd”). ComEd’s parent company is Exelon Utilities.
On July 15, 2019, Exelon filed a Current Report on Form 8-K with the SEC, disclosing that both Exelon and ComEd had “received a grand jury subpoena from the U.S. Attorney’s Office for the Northern District of Illinois requiring production of information concerning their lobbying activities in the State of Illinois.”
Then, on October 9, 2019, Exelon filed another Current Report on Form 8-K with the SEC, disclosing that, on October 4, 2019, both Exelon and ComEd “received a second grand jury subpoena from the U.S. Attorney’s Office for the Northern District of Illinois that requires production of records of any communications with certain individuals and entities, including Illinois State Senator Martin Sandoval.” That Current Report also disclosed that, as far back as “[o]n June 21, 2019, the Exelon Corporation Board formed a Special Oversight Committee, consisting solely of independent directors, to oversee [Exelon and ComEd’s] cooperation and compliance with the subpoena, any further action taken by the U.S. Attorney and any resulting actions that may be required or recommended.”
On October 15, 2019, Exelon issued a press release announcing the abrupt departure of Anne Pramaggiore (“Pramaggiore”), Chief Executive Officer (“CEO”) of Exelon Utilities, and former President/CEO of ComEd. The Company’s statement on Pramaggiore’s retirement offered no reason for her departure, but analysts following the Company concluded that the criminal subpoenas and Pramaggiore’s abrupt resignation were related.
On this news, Exelon’s stock price fell $2.15 per share, or 4.57%, to close at $44.91 per share on October 16, 2019.
Then, on October 31, 2019, Exelon filed a Quarterly Report on Form 10-Q with the SEC, disclosing that “[o]n October 22, 2019, the SEC notified Exelon and ComEd that it has also opened an investigation into their lobbying activities.”
On this news, Exelon’s stock price fell $1.17 per share, or 2.51%, to close at $45.49 per share on October 31, 2019.
Finally, on November 1, 2019, the Chicago Tribune reported that “[a] source with knowledge of the case in Chicago” confirmed that “Pramaggiore is one focus of the ongoing federal investigation.” According to the same article, “[t]he ComEd lobbying investigation dates to at least mid-May, when the FBI executed search warrants at the homes of former lobbyist Mike McClain of Quincy, a longtime confidant of House Speaker Michael Madigan, and of former 23rd Ward Ald. Michael Zalewski.” Additionally, “[t]he information sought by the FBI included records of communications among Madigan, McClain and Zalewski about attempts to obtain ComEd lobbying work for Zalewski.”
On this news, Exelon’s stock price fell an additional $0.15 per share to close at $45.34 per share on November 1, 2019.
The Complaint, filed on December 16, 2019, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Exelon and/or its employees were engaged in unlawful lobbying activities; (ii) the foregoing increased the risk of a criminal investigation into Exelon; (iii) ComEd’s revenues were in part the product of unlawful conduct and thus unsustainable; and (iv) that, as a result, the Company’s public statements were materially false and misleading at all relevant times.
For more information on the Exelon class action go to: https://bespc.com/exc
About Bragar Eagel & Squire, P.C.:Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.