Athira Pharma, Inc. Securities Fraud Investigation
Berger Montague is investigating securities fraud allegations against Athira Pharma, Inc. (“Athira” or the “Company”) on behalf of investors who purchased Athira securities (NASDAQ: ATHA) between September 18, 2020 and June 17, 2021 (the “Class Period”), including shares purchased on or traceable to the Company’s initial public offering in September 2020.
About the case
Athira, based in Washington, is a biopharma company developing treatments for neurodegeneration, such as Alzheimer’s disease. Since going public in September 2020, Athira and senior management have repeatedly emphasized the importance of CEO Leen Kawas’ doctoral research to the company’s product candidates.
According to recently filed lawsuits, the Company and the underwriters of its IPO failed to disclose to investors that research conducted by Kawas, which formed the foundation for Athira’s product candidates and intellectual property, was tainted by Kawas’ scientific misconduct, including manipulation of key data.
Investors began to learn the truth on June 17, 2021, when the Company announced that Kawas had been placed on leave pending a review of accusations that, while a doctoral student at Washington State University, Kawas altered images in four separate papers, calling into question research upon which Athira’s products are based. On this news, Athira shares declined $7.09 per share, or 39%, to close at $11.15 per share on June 18, 2021.
Whistleblowers: Anyone with non-public information regarding Athira is encouraged to confidentially assist Berger Montague’s investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.