Sage Therapeutics(US:SAGE) Prnewswireยท2024-09-05 20:03Core Viewpoint - A class action lawsuit has been initiated against Sage Therapeutics, Inc. for alleged securities fraud, with investors from the Class Period (April 12, 2021, to July 23, 2024) being invited to seek lead plaintiff status [1][2]. Company Background - Sage Therapeutics, based in Cambridge, Massachusetts, focuses on developing new treatments for serious brain disorders [3]. Securities Fraud Claims - The lawsuit alleges that Sage Therapeutics made materially false and misleading statements regarding its business and drug efficacy, including: - SAGE-217 (zuranolone) was less effective for major depressive disorder (MDD) than claimed, leading to doubts about FDA approval for MDD [4]. - SAGE-718 (dalzanemdor) was less effective for mild cognitive impairment (MCI) due to Parkinson's Disease (PD) than represented [4]. - SAGE-324, an investigational drug for essential tremor (ET), was also less effective than claimed [4]. Stock Price Impact - Following the FDA's Complete Response Letter on August 4, 2023, regarding zuranolone's effectiveness for MDD, Sage's stock price dropped by $19.35 (53.6%) to $16.75 [5]. - On April 17, 2024, after announcing disappointing Phase 2 study results for SAGE-718, the stock fell by $3.06 (19.58%) to $12.57 [6]. - After the July 24, 2024 announcement regarding SAGE-324's study results, the stock price decreased by $2.70 (20.64%) to $10.38 [7].