Sage Therapeutics(US:SAGE) GlobeNewswire News Roomยท2024-09-01 14:11Core Viewpoint - The article discusses a class action lawsuit against Sage Therapeutics, alleging violations of the Securities Exchange Act of 1934 due to misleading statements regarding the effectiveness of its drug candidates and subsequent stock price declines [1][4][5]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Korver v. Sage Therapeutics, Inc., and covers purchasers of Sage Therapeutics securities from April 12, 2021, to July 23, 2024 [1]. - Investors have until October 28, 2024, to seek appointment as lead plaintiff in the lawsuit [1]. - The lawsuit alleges that Sage Therapeutics and its executives made false statements about the effectiveness of zuranolone, dalzanemdor, and SAGE-324, leading to inflated stock prices [4][5][6]. Group 2: Drug Candidates and Allegations - Sage Therapeutics is developing zuranolone for postpartum depression (PPD) and major depressive disorder (MDD), in collaboration with Biogen [3]. - The lawsuit claims that zuranolone was less effective for MDD than represented, and the FDA was unlikely to approve its NDA for MDD in its current form [4]. - Dalzanemdor was alleged to be less effective for mild cognitive impairment (MCI) due to Parkinson's Disease (PD) than claimed, and its clinical prospects were overstated [4][6]. - SAGE-324 was also claimed to be less effective for essential tremor (ET) than suggested, with its clinical prospects similarly overstated [4][7]. Group 3: Stock Price Impact - Following the disclosure on August 4, 2023, regarding the FDA's limited approval of zuranolone, Sage Therapeutics' stock price fell nearly 54% [5]. - After the April 17, 2024, announcement that dalzanemdor did not meet its primary endpoint, the stock price dropped nearly 20% [6]. - On July 24, 2024, the announcement regarding SAGE-324's failure to demonstrate significant efficacy led to a nearly 21% decline in stock price [7][8].