Investigation Launched into Sage Therapeutics by Former Louisiana Attorney General

Kahn Swick & Foti Conducts Investigation into Sage Therapeutics

In a significant development in the biopharmaceutical sector, Kahn Swick & Foti, LLC (KSF), helmed by former Louisiana Attorney General Charles C. Foti, Jr., has initiated an investigation into Sage Therapeutics, Inc. (NasdaqGM: SAGE). This inquiry is driven by serious allegations regarding the company’s conduct and the responsibilities of its executive team toward shareholders.

Background on Sage Therapeutics

Sage Therapeutics focuses on the development and commercialization of brain health medicines, a critical area of medical research. However, recent disclosures have raised red flags among investors and stakeholders. As of April 17, 2024, Sage announced that its Phase 2 study for SAGE-718 did not show statistically significant improvements compared to the placebo group. These findings indicated a major setback, leading to the decision to cease further development of the product for Parkinson’s Disease (PD).

Further compounding the situation, Sage’s SAGE-324 product also failed to meet expectations in a Phase 2 study aimed at treating essential tremor (ET), revealing a lack of statistically significant improvement in both tremors and daily living activities among participants who received the treatment. Following these disappointing results, the company and its partners, including Biogen, decided to terminate the ongoing safety study and end further clinical development of SAGE-324.

Legal Ramifications

The aftermath of these failures has resulted in a securities class action lawsuit against Sage Therapeutics and certain executives. The lawsuit claims that the company failed to disclose pertinent information during the class period, violating federal securities laws. These developments have prompted KSF to investigate whether the officers and/or directors of Sage breached their fiduciary responsibilities to shareholders or otherwise contravened state or federal regulations.

Charles C. Foti, Jr. emphasized the importance of accountability and transparency among corporate leaders, noting that investors deserve to be fully informed about the risks associated with their investments. KSF encourages any individuals with pertinent information regarding this investigation or those who have been long-term shareholders of Sage to come forward. Both a phone line and email contact are available for those seeking to provide insights or who wish to understand their legal rights further.

About Kahn Swick & Foti, LLC

KSF is widely recognized as one of the leading boutique securities litigation law firms in the nation. With a focus on recovering losses for investors due to corporate fraud and malfeasance, KSF has built a reputation for diligence and success. The firm has represented a wide array of clients, including public and private institutional investors, ensuring their interests are upheld in the complex landscape of securities law.

Intended to protect investor rights and enhance corporate accountability, KSF’s investigation into Sage Therapeutics underscores the broader implications of failed clinical trials and corporate governance issues.

For more information about this ongoing investigation or to reach out with potential insights, contact Lewis Kahn, Managing Partner at KSF, or visit their website at www.ksfcounsel.com.