A class action lawsuit has been filed against Amylyx Pharmaceuticals (NASDAQ:AMLX) on February 9, 2024. The plaintiffs (shareholders) allege that they bought Amylyx stock at artificially inflated prices between November 11, 2022 and November 8, 2023 (Class Period) and are now seeking compensation for the damages. Investors who bought AMLX stock during that period can learn about joining the lawsuit here: https://zlk.com/pslra-1/amylyx-lawsuit-submission-form?wire=16
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Amylyx is a clinical-stage pharmaceutical company focused on developing potential treatments for neurodegenerative diseases. Amylyx is well known for AMX0035 (commercially known as RELYVRIO), an experimental drug for the treatment of amyotrophic lateral sclerosis (ALS). The U.S. Food and Drug Administration (FDA) approved RELYVRIO for the treatment of ALS in adults in the U.S. in September, 2022.
Importantly, the plaintiffs maintain that Amylyx and four of its current/Ex senior officers have consistently deceived investors by withholding information and making false claims about the company’s business practices and prospects during the Class Period.
During the Class Period, Amylyx filed a regulatory document on February 14, 2023 that claimed higher demand for “RELYVRIO in the U.S. than initially anticipated pre-launch and, as a result, expects to meaningfully exceed fourth quarter and full-year 2022 Wall Street research analyst consensus estimates for revenue.” Plus, in March 2023, the company claimed that it was on track to “double the amount of people on RELYVRIO on a net basis.”
Finally, the truth was revealed during the earnings call on November 9, 2023. The company stated that despite a steady growth in RELYVRIO’s adoption, its “results were impacted by a number of factors.” One of the reasons was a sluggish growth in net adds for RELYVRIO and increased discontinuations.
As per the class action lawsuit, Amylyx had caused the AMLX stock to trade at artificially inflated prices by knowingly and recklessly misleading investors about RELYVRIO’s commercial prospects and ancillary issues.
Notably, in the past year, AMLX stock has lost over 90%, massively impacting the plaintiff’s holding value.
