Athira (ATHA) $10M Investor Settlement
Athira Pharma, Inc. has agreed to a $10 million settlement with investors to resolve claims that the company misled them regarding research integrity. The lawsuit alleges that Athira's former CEO, Dr. Leen Kawas, improperly altered images in research papers, which were used to promote the company's scientific credibility and artificially inflate its stock price.
Outline
The lawsuit accuses Athira of making false statements and omitting material facts regarding its scientific research. These misrepresentations allegedly led to an artificial inflation of the company's stock price, causing significant financial losses for investors with the stock dropping nearly 39%.
Timeline
September 17, 2020 - June 17, 2021: Athira publicly promoted the progress of its drug development pipeline, which relied heavily on research allegedly falsified by Dr. Kawas. The company's communications during this period boosted investor confidence, which in turn inflated the stock price.
June 17, 2021: News broke that Dr. Kawas, Athira's CEO at the time, had altered images in research papers co-authored during her academic career. These papers were referenced in patent applications that Athira later licensed, casting doubt on the integrity of the company’s scientific foundation.
June 18, 2021: Following the revelations, Athira's stock price plummeted approximately 39%, resulting in substantial investor losses.
Background
Athira Pharma is a biotech company that presented itself as a pioneer in the development of innovative treatments for neurodegenerative diseases. However, it was later discovered that the company's CEO had altered images in her research, raising serious questions about the company's scientific validity and ethics. This misrepresentation led to significant financial losses for investors, who were misled into believing in the robustness of Athira’s research and development.
What Can Investors Expect Now?
Athira has agreed to a $10 million settlement to resolve the claims associated with misleading investors about its research integrity.
Investors who suffered losses during the class period can file for a payout from the settlement fund. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons and entities who purchased or otherwise acquired Athira Pharma publicly traded common stock during the period from September 17, 2020 through June 17, 2021, inclusive, and were damaged thereby
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.47 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $1.88 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.