Class Action Lawsuit News

Lockridge Grindal Nauen P.L.L.P. Announces Shareholder Class Action Lawsuit Against Axonyx, Inc. -- AXYX

Lockridge Grindal Nauen P.L.L.P. Announces Shareholder Class Action Lawsuit Against Axonyx, Inc. -- AXYX: "The complaint charges that defendants Axonyx, Inc., Marvin S. Hausman (CEO and Chairman) and Gosse B. Bruinsma (President, COO, and Vice President) violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period. The complaint alleges that Axonyx, a biopharmaceutical company, engaged in two late-stage Phase III clinical trials of Phenserine, an experimental drug for the treatment of mild to moderate Alzheimer's disease. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's only viable drug candidate, Phenserine, an acetylcholinesterase ('AChE') inhibitor, failed to curb symptoms of Alzheimer's disease; (2) that the Company knew or recklessly disregarded the fact that Phenserine failed to partially block the effects of AChE, an enzyme that breaks down a neurotransmitter in the brain important for memory cognition; (3) that as a consequence of the foregoing, the Company would not be able to commercialize Phenserine, currently its only potential source of revenue; and (4) that as a result the Company's positive statements about the development and potential approval of Phenserine were lacking in all reasonable basis when made."

posted by Monkeyman @ 5:01 PM