Investigation into Potential Securities Law Violations Regarding Cerevel Therapeutics Holdings, Inc.
New York, NY – Entwistle & Cappucci LLP, a leading securities law firm, has announced that it is investigating potential federal securities law violations on behalf of its clients and other former holders of Cerevel Therapeutics Holdings, Inc. (Cerevel or the Company) common stock. The investigation comes following the Company’s secondary public stock offering of approximately 19 million shares in October 2023.
Background
Cerevel was a publicly traded biopharmaceutical company that focused on developing therapeutics for various neurological and psychiatric disorders. In August 2024, the Company was acquired by AbbVie, Inc. for $2.1 billion. Prior to the acquisition, Cerevel’s common stock was traded on the NASDAQ under the ticker symbol “CERE.”
Secondary Public Stock Offering
On October 16, 2023, Cerevel conducted a secondary public stock offering of approximately 19 million shares. The offering was priced at $22.00 per share, representing a significant discount to the price at which the stock was traded prior to the announcement of the offering.
Investigation Details
Entwistle & Cappucci LLP is investigating whether Cerevel and certain of its officers and directors violated federal securities laws by making false and misleading statements regarding the Company’s financial condition and prospects. Specifically, the firm is examining whether the Company and its executives failed to disclose material information about the Company’s financial condition and prospects, including information regarding the Company’s financial performance and its ability to meet its financial obligations.
Impact on Shareholders
The secondary public stock offering came just weeks before the Company’s acquisition by AbbVie. Many Cerevel shareholders were unable to sell their shares prior to the offering, which resulted in significant losses. The offering price represented a significant discount to the pre-announcement price, further exacerbating the losses suffered by shareholders.
Impact on the World
The investigation into potential securities law violations at Cerevel Therapeutics Holdings, Inc. highlights the importance of transparency and honesty in the financial markets. When companies and their executives fail to disclose material information, it can lead to significant losses for investors and undermine confidence in the markets as a whole.
Conclusion
Entwistle & Cappucci LLP’s investigation into potential securities law violations at Cerevel Therapeutics Holdings, Inc. serves as a reminder of the importance of transparency and honesty in the financial markets. The secondary public stock offering of approximately 19 million shares, which came just weeks before the Company’s acquisition by AbbVie, resulted in significant losses for many shareholders. The investigation is ongoing, and it will be important to monitor developments closely.
- Entwistle & Cappucci LLP is investigating potential securities law violations on behalf of its clients and other former holders of Cerevel Therapeutics Holdings, Inc. common stock.
- The investigation comes following the Company’s secondary public stock offering of approximately 19 million shares in October 2023.
- Cerevel was a publicly traded biopharmaceutical company that was acquired by AbbVie, Inc. in August 2024.
- The investigation focuses on potential false and misleading statements regarding the Company’s financial condition and prospects.
- Many Cerevel shareholders suffered significant losses due to the secondary public stock offering.
- The investigation highlights the importance of transparency and honesty in the financial markets.
