Class Action Lawsuit Filed Against Cerevel Therapeutics, Bain Capital, and Pfizer
On April 4, 2025, Robbins LLP announced that a class action lawsuit has been filed against Cerevel Therapeutics Holdings, Inc. (Cerevel), Bain Capital Investors, LLC (Bain), and Pfizer, Inc. (Pfizer) in the United States District Court for the Southern District of California. The lawsuit alleges that the defendants violated securities laws during the period from October 11, 2023, to August 1, 2024.
Violations of Securities Exchange Act of 1934
The class action lawsuit includes all persons or entities that sold or disposed of publicly-traded common stock of Cerevel during the aforementioned period and were thus damaged by the defendants’ violations of Section 10(b) of the Securities Exchange Act of 1934. The complaint alleges that the defendants made false and misleading statements regarding the safety and efficacy of Cerevel’s drug candidates, leading to artificially inflated stock prices.
Violations of Securities Exchange Act of 1934 (Section 14(a))
Additionally, the lawsuit includes all persons or entities that held shares of Cerevel as of January 8, 2024, the record date for the merger of Cerevel and AbbVie Inc., and were entitled to vote on the merger. These individuals were allegedly damaged by the defendants’ violations of Section 14(a) of the Securities Exchange Act of 1934, which relates to proxy statements and solicitations. The complaint alleges that the defendants made false and misleading statements regarding the merger, including misrepresenting the financial benefits to Cerevel shareholders.
Violations of Exchange Act (Section 20A)
Furthermore, the lawsuit includes all persons or entities that sold shares of Cerevel stock contemporaneously with Bain’s purchase of shares on or about October 16, 2023. These individuals were allegedly damaged by Bain’s violations of Section 20A of the Exchange Act, which requires that large trades be reported promptly to the public. The complaint alleges that Bain failed to disclose its large purchases, leading to an unfair advantage in the market.
Impact on Individual Investors
If you sold Cerevel stock during the specified period or held shares as of the record date and voted on the merger, you may be eligible to join the class action lawsuit. The lawsuit seeks damages for the losses suffered due to the defendants’ alleged securities law violations. If the lawsuit is successful, you may be entitled to a portion of the damages recovered.
Impact on the World
The outcome of this lawsuit could have significant implications for the biotech industry and investor community as a whole. The allegations of false and misleading statements regarding the safety and efficacy of drug candidates could lead to increased scrutiny and regulation of clinical trial data disclosures. Additionally, the allegations of violations related to proxy statements and large trades could result in heightened transparency requirements for companies and investors.
- Individual investors who sold Cerevel stock during the specified period or held shares as of the record date and voted on the merger may be eligible to join the class action lawsuit.
- The lawsuit seeks damages for losses suffered due to the defendants’ alleged securities law violations.
- The outcome of the lawsuit could lead to increased scrutiny and regulation in the biotech industry and investor community.
Conclusion
The class action lawsuit filed against Cerevel Therapeutics, Bain Capital, and Pfizer alleges securities law violations during the period from October 11, 2023, to August 1, 2024. The lawsuit includes allegations of false and misleading statements regarding the safety and efficacy of drug candidates, misrepresentations related to the merger, and failure to disclose large trades. If you sold Cerevel stock during the specified period or held shares as of the record date and voted on the merger, you may be eligible to join the class action lawsuit. The outcome of this lawsuit could have significant implications for the biotech industry and investor community as a whole.
