Cloopen Group Holding Limited (NYSE: RAAS), Athira Pharma Inc. (NASDAQ: ATHA), and AcelRx Pharmaceuticals Inc. (NASDAQ: ACRX) are under investigation for potential federal securities laws violation.
AcelRx’s lead candidate DSUVIA
AcelRx develops acute pain treatment therapies, and its lead candidate DSUVIA, has FDA approval for acute pain management. On February 16, 2021, the company disclosed that the FDA had issued it a warning letter regarding DSUVIA promotional claims. The FDA said the company made misleading or false claims regarding the efficacy and risks of DSUVIA. Therefore the claims misbranded DSUVIA within the meaning of the Federal Food, Drug and Cosmetic ACT and thus making its distribution violative. Shares dropped 8.37% following the warning.
Athira Pharma investigated over placing CEO on leave.
Law Offices of Howard G. Smith is investigating Athira Pharma after the company placed its CEO and President Leen Kawas on leave subject to reviews of actions arising from doctoral research that Kawas carried at Washington State University. Media reports indicate that investigations into scientific papers authored by Kawas had doctored images. Following the news, the company’s shares dropped 39%, leading to losses for investors.
Cloopen Group under probe concerning its IPO
Shareholder Rights Law Firms Johnson Fistel LLP is investigating possible claims against Cloopen Group Holding regarding violation of federal securities laws in connection with its IPO. On February 9, 2021, the company sold 20 million shares in its IPO for $16 per share, raising almost $320 million in the capital. As of June 23, 2021, the stock had dipped to $7.81 per share. The investigation seeks to establish whether Cloopen Group’s SEC filings in connection with the IPO contained a false statement of material facts or failed to state necessary facts, making misleading statements regarding its operations and business.