#United States #New York #Class Action #Securities Fraud #Biohaven Ltd

Pomerantz Law Firm Initiates Class Action Against Biohaven Ltd.

On September 8, 2025, the Pomerantz Law Firm announced the filing of a class action lawsuit against Biohaven Ltd. and several key officers affiliated with the company, listed on the NYSE under the ticker BHVN. The action, represented in the United States District Court for the District of Connecticut and recorded under case number 25-cv-01120, seeks justice for investors who purchased Biohaven securities between March 24, 2023, and May 14, 2025.

The lawsuit revolves around allegations that these defendants violated federal securities laws, particularly under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, alongside Rule 10b-5, putting numerous investors in jeopardy as a direct result of misleading statements and negligence.

Individuals who acquired Biohaven securities during this designated period have until September 12, 2025, to petition the court for lead plaintiff status as part of the class action. Interested parties can access the details of the complaint and other relevant information on the Pomerantz Law Firm's website.

Background on Biohaven

Biohaven is a biopharmaceutical entity that focuses on discovering and developing therapies primarily within the fields of immunology, neuroscience, and oncology. Among its promising developments is a drug named troriluzole, intended to treat spinocerebellar ataxia (SCA) and a therapy called BHV-7000 for bipolar disorder.

Despite innovative aspirations, Biohaven's path has not been clear-cut. A Phase 3 trial assessing the efficacy of troriluzole in treating SCA failed to meet its primary endpoint in May 2022, which has raised significant concerns about its long-term viability as a therapeutic option. Notably, even after such setbacks, Biohaven persistently presented the drug's regulatory prospects positively, leading to further investor commitments.

In May 2023, Biohaven announced it had submitted a New Drug Application (NDA) for troriluzole to the FDA. Similarly, in October 2023, the company disclosed that the European Medicines Agency (EMA) accepted its Marketing Authorization Application (MAA) for the same treatment. However, these positive updates were overshadowed by the flagrant discrepancies in the defendants' claims.

Allegations of Misleading Information

The core of the lawsuit hinges on claims that Biohaven and its executives made materially false and misleading statements regarding the company's operational prospects and business strategies. Specifically, allegations include:
1. Overstating the regulatory prospects of troriluzole as a viable treatment for SCA, as well as overstating the sufficiency of the data provided to the FDA.
2. Misrepresenting the could-be success of BHV-7000 as an effective treatment for bipolar disorder, casting doubt on its clinical viability.
3. Failing to disclose the significant adverse implications the revelation of this information would have on Biohaven's business operations and financial health.

As a result, these misleading narratives have sparked considerable volatility in Biohaven's stock price, which dropped notably following several critical announcements. For instance, on July 27, 2023, after the FDA rejected the NDA for troriluzole, stocks plummeted by $5.38 per share (22.61%). This was followed by further declines as Biohaven continued to face scrutiny regarding its drug efficacy and market strategies.

In March 2025, after releasing matchless data on the performance of BHV-7000, the company's stock dropped again by $5.12 per share (13.77%). Additional challenges arose when it was reported that Biohaven withdrew its MAA for troriluzole in late March 2025, triggering an additional fall of $3.56 per share (15.21%) shortly after. As of mid-May 2025, the situation only deteriorated further as another delay was announced by the FDA regarding the review process of the NDA for troriluzole, which resulted in further drops in the stock price.

Conclusion

The Pomerantz Law Firm, steeped in a legacy of fighting for shareholder rights, now seeks to hold Biohaven accountable for its actions. By recovering losses for investors who trusted the company, the firm aims to reaffirm investor confidence in equity markets. With a history of successful class action outcomes, it is poised to address the injustices faced by Biohaven's stakeholders as the case unfolds.

This class action presents a vital juncture for current and former investors impacted by the alleged violations. As updates develop, investors are encouraged to stay informed and engage with legal counsel to explore their options in this evolving scenario.

For further inquiries, contact the Pomerantz Law Firm at 646-581-9980 or visit Pomerantz Law.