According to the law firm press release, ACADIA is a biopharmaceutical company focused on the development and commercialization of medicines to address unmet medical needs in neurological and related central nervous system disorders. ACADIA has a pipeline of product candidates led by NUPLAZID™ (pimavanserin), which is in Phase III development as a treatment for Parkinson’s disease psychosis (“PDP”).
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse facts regarding the timing of ACADIA’s submission of its New Drug Application (“NDA”) to the FDA for NUPLAZID. As a result of defendants’ false and misleading statements or omissions during the Class Period, ACADIA securities traded at artificially inflated prices, with its stock trading at prices above $45 per share.
On February 26, 2015, ACADIA announced its 2014 fourth quarter and year-end financial results (for the year ended December 31, 2014) and told investors it “remain[ed] on track to submit [its] New Drug Application to the FDA in the first quarter of 2015.” Then, on March 11, 2015, ACADIA issued a press release announcing a change in the timing of its planned NDA submission to the FDA for NUPLAZID from the first quarter of 2015 to the second half of 2015. In a separate press release the same day, ACADIA announced the retirement of the Company’s Chief Executive Officer and director. On this news, ACADIA common stock dropped $9.94 per share to close at $34.82 per share on March 12, 2015, a one-day decline of 22% on volume of 15 million shares.
On March 13, 2017, the parties filed a Stipulation of Settlement. This Settlement was preliminarily approved on June 9.