Bronstein, Gewirtz & Grossman, LLC Investigates Potential Securities Fraud Claims Against Sage Therapeutics, Inc.
New York, NY – In a recent press release, Bronstein, Gewirtz & Grossman, LLC, a prominent securities fraud class action law firm, announced that it is investigating potential claims on behalf of purchasers of Sage Therapeutics, Inc. (Sage or the Company) (NASDAQ:SAGE). The investigation focuses on alleged securities fraud, following a report from short-seller Citron Research that raised concerns about the validity of the data supporting the efficacy of Sage’s investigational drug, Zulresso.
Background on Sage Therapeutics and Zulresso
Sage Therapeutics is a clinical-stage biopharmaceutical company focused on developing and commercializing novel medicines to transform the lives of patients with debilitating central nervous system disorders. Zulresso, the company’s lead product, is an intravenous formulation of allopregnanolone, a neuroactive steroid that modulates synaptic plasticity and inhibits excessive glutamatergic activity. Zulresso was approved by the U.S. Food and Drug Administration (FDA) in March 2018 for the treatment of postpartum depression in women.
Allegations of Securities Fraud
The investigation by Bronstein, Gewirtz & Grossman, LLC stems from a report by Citron Research, which accused Sage of manipulating data in clinical trials to support the approval of Zulresso. The short-seller alleged that the company had hidden negative data from investors and regulators, leading to artificially inflated stock prices. Sage Therapeutics’ stock price dropped significantly following the release of the report.
Impact on Individual Investors
If the allegations of securities fraud are proven, investors who purchased Sage securities prior to April 12, 2021, and continue to hold to the present, may be able to recover their losses through a class action lawsuit. These investors are encouraged to visit the firm’s site, bgandg.com/SAGE, to obtain additional information and assist the investigation.
Global Implications
The potential implications of this situation extend beyond individual investors. The allegations of data manipulation and securities fraud could have significant consequences for the biopharmaceutical industry as a whole. If proven, such actions could damage public trust in clinical trials, regulatory agencies, and the entire pharmaceutical sector. It could also lead to increased scrutiny of drug approval processes and the need for greater transparency in clinical trial data.
Conclusion
The investigation by Bronstein, Gewirtz & Grossman, LLC into potential securities fraud claims against Sage Therapeutics, Inc. follows allegations of data manipulation and hidden negative data in the company’s clinical trials for its lead product, Zulresso. If these allegations are proven, investors who purchased Sage securities prior to April 12, 2021, may be able to recover their losses through a class action lawsuit. However, the potential implications of this situation extend far beyond individual investors, with potential consequences for public trust in clinical trials, regulatory agencies, and the pharmaceutical industry as a whole. As the investigation continues, it is essential to stay informed and seek professional advice if you have any concerns.
- Bronstein, Gewirtz & Grossman, LLC is investigating potential securities fraud claims against Sage Therapeutics, Inc.
- Allegations of data manipulation and hidden negative data in clinical trials for Zulresso.
- Investors who purchased Sage securities prior to April 12, 2021, may be able to recover losses through a class action lawsuit.
- Implications for public trust in clinical trials, regulatory agencies, and the pharmaceutical industry.
