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BTAI.US
id: 772

BioXcel Therapeutics ($BTAI) $9.75M Investor Settlement

Eligible claimants can submit their claims for compensation.
$9,750,000
Cash Settlement
D. Connecticut
Court
3:23-cv-00915
Case number
03/09/2023
Class period Start
06/28/2023
Class period End
06/30/2026
Claim deadline
BioXcel Therapeutics has agreed to settle $9,75M with $BTAI investors to resolve claims that it misled them about internal controls, protocol adherence, and data integrity in its Phase 3 TRANQUILITY II clinical trial.

Outline:

In December 2021, BioXcel launched its Phase 3 TRANQUILITY II trial for BXCL501 in Alzheimer’s-related agitation and projected a 2023 data readout. In June 2023, the company disclosed that an FDA inspection found protocol violations at a key trial site and that a principal investigator fabricated safety-report emails. Following the disclosure, $BTAI fell 63.8%, and investors sued. In January 2026, BioXcel agreed to settle for $9,750,000.

Timeline:

  • December 15, 2021: BioXcel announces initiation of its Phase 3 TRANQUILITY II and III trials for BXCL501 in Alzheimer’s-related agitation.
  • December 2022: The FDA inspects a TRANQUILITY II trial site and issues a Form 483 citing inspectional observations.
  • March 9, 2023: BioXcel reports that TRANQUILITY II is fully enrolled and expects top-line data in Q2 2023.
  • June 29, 2023: BioXcel discloses protocol violations and fabricated email correspondence; shares fall about 63.8%.
  • July 7, 2023: A securities class action complaint is filed in the District of Connecticut.
  • February 27, 2026: The parties reach an agreement to settle for $9,75M
Background:

BioXcel Therapeutics is a biopharmaceutical company developing neuroscience and immuno-oncology treatments. One of its lead programs, BXCL501, is a sublingual film formulation under development for agitation associated with Alzheimer’s disease.

Beginning in late 2021, BioXcel advanced its Phase 3 TRANQUILITY II trial and highlighted expected 2023 top-line data, along with BXCL501’s Breakthrough Therapy and Fast Track designations. The company positioned the drug as a potential treatment for a large and growing Alzheimer’s-related agitation market.

In June 2023, BioXcel disclosed that an FDA inspection at a key TRANQUILITY II site identified failures to follow informed consent procedures, maintain adequate case histories, and properly report a serious adverse event. The company also confirmed that a principal investigator fabricated email correspondence that had been provided to regulators.

Following this disclosure, $BTAI declined approximately 63.8% in a single trading day. Investors later filed a securities lawsuit alleging that the company’s statements about trial oversight and data integrity were misleading.

What Can Investors Expect Now?

BioXcel Therapeutics has agreed to settle $9,750,000 with $BTAI investors to resolve claims that it misled them about internal controls, protocol adherence, and data integrity in its Phase 3 TRANQUILITY II clinical trial.

If you were damaged due to this situation, you may be able to file for a payout and receive your share of the settlement. You can review eligibility details in the settlement notice.
Case Type
US Securities Class Action
Case Status
Accepting Claims
Alleged Offence
Misleading Statements, 
Failure to Disclose, 
Negligence, 
Omissions
Suspected Party
Directors, 
Management, 
Service Provider
Security Type
Stocks
Trade Direction
Long
Payout per Share
1.52
Filing date
07/05/2023
Lead Plaintiff Deadline
09/05/2023
Plaintiffs
Katelyn Martin
Attorneys
Kessler Topaz Meltzer & Check
Judge
Hon. Sarala Vidya Nagala
Administrator
Strategic Claims Services
Court hearing date
09/02/2026
Exclusion deadline
08/05/2026
Objection deadline
08/05/2026
Attorney fee
$2,662,500
Trades matching type
FIFO

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