StockNews.AI
SAGE
StockNews.AI
71 days

INVESTOR NOTICE: Kaskela Law LLC Announces Investigation of Sage Therapeutics, Inc. and Encourages Long-Term Investors to Contact the Firm - SAGE

1. Kaskela Law investigates potential fiduciary breaches by Sage's board. 2. Securities fraud complaint claims Sage concealed risks regarding key drugs. 3. FDA denied zuranolone approval for MDD due to efficacy concerns. 4. Sage abandoned SAGE-718 and SAGE-324 after poor clinical trials. 5. Investors faced significant losses from these undisclosed risks.

5m saved
Insight
Article

FAQ

Why Very Bearish?

The ongoing investigation and past FDA rejections severely impact investor confidence and stock performance. Historical examples include companies that faced similar lawsuits, resulting in dramatic share price declines.

How important is it?

The breach of fiduciary duty claims and FDA denials significantly undermine trust in Sage, affecting potential future growth and collaboration opportunities.

Why Short Term?

The immediate legal scrutiny and negative news will likely affect investor sentiment quickly. Previous incidents show that such investigations usually lead to volatility in the near term.

Related Companies

BIIB
Kaskela Law LLC announces that it is investigating potential breach of fiduciary duty claims concerning Sage Therapeutics, Inc. (NASDAQ:SAGE) ("Sage") on behalf of the company's long-term investors.Click here to receive additional information about your legal rights and options: https://kaskelalaw.com/case/sage-therapeutics/Recently a securities fraud complaint was filed against Sage on behalf of certain investors who purchased or acquired shares of the company's stock between April 12, 2021 and July 23, 2024. According to the complaint, during that time period Sage and certain of the company's senior executive officers concealed from investors adverse information and substantial risks associated with Sage's development of three pharmaceuticals: (i) zuranolone (SAGE-217/BIIB125), a flagship drug, then under development in collaboration with affiliates of Biogen Inc. (together, "Biogen"), whose most lucrative potential application was to treat major depressive disorder ("MDD"); (ii) SAGE-718 (dalzanemdor), for the treatment of certain cognitive disorders and diseases; and (iii) SAGE-324 (BIIB124), under development with Biogen, for the treatment of essential tremor.As further detailed in the complaint, by July 2024 investors learned that the FDA had denied approval of zuranolone for the treatment of MDD because it lacked long-term efficacy and was no better than a placebo after only weeks-a drug profile inconsistent with FDA guidance from 2018 for developing a lasting and effective MDD treatment. Investors also learned that in approving zuranolone for PPD but not MDD, the FDA emphasized that clinical testing seemed to correlate zuranolone with an increased incidence of suicidal ideation and behavior in MDD patients that was not present for PPD patients. Investors were also shocked to learn that Sage abandoned developing SAGE-718 and SAGE-324 due to adverse clinical trials, resulting in Biogen's decision to terminate its collaboration and license agreement with Sage for the development of SAGE-324. In response to these disclosures, shares of Sage's common stock significantly declined in value, harming the company's long-term investors.The investigation seeks to determine whether the members of Sage's board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.Current Sage shareholders who purchased or acquired SAGE shares prior to January 1, 2024 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 - 0750 for additional information about this investigation and their legal rights and options. Alternatively, investors may submit their information to the firm by clicking on the following link (or by copying and pasting the link into your browser):https://kaskelalaw.com/case/sage-therapeutics/Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.CONTACT:KASKELA LAW LLCD. Seamus Kaskela, Esq. ([email protected]) Adrienne Bell, Esq. ([email protected]) 18 Campus Blvd., Suite 100 Newtown Square, PA 19073 (484) 229 - 0750 www.kaskelalaw.comThis notice may constitute attorney advertising in certain jurisdictions.SOURCE: Kaskela Law LLC

Related News