Sage Therapeutics, Inc. (NASDAQ: SAGE)

This lawsuit is for anyone who acquired securities in Sage Therapeutics, Inc. (NASDAQ: SAGE) from April 12, 2021 through July 23, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by failing to timely inform investors that the Company’s drugs, zuranolone, SAGE-718 and SAGE-324, were all less effective than the the Company led investors to believe.

On August 4, 2023, Sage disclosed that the U.S. Food and Drug Administration (“FDA”) had approved the New Drug Application (“NDA”) for its postpartum depression (“PPD”) and major depressive disorder (“MDD”) drug, zuranolone, only as a treatment for adults with PPD and had “issued a Complete Response Letter (CRL) for the [NDA] for zuranolone in the treatment of adults with MDD” because “the application did not provide substantial evidence of effectiveness to support the approval of zuranolone for the treatment of MDD,” advising that “an additional study or studies will be needed” for that additional indication. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on April 17, 2024, Sage disclosed that a Phase 2 study of SAGE-718 for the treatment of mild cognitive impairment (“MCI”) due to Parkinson’s Disease (“PD”) “did not meet its primary endpoint” of demonstrating significant differences between participants treated with the drug versus placebo, and thus, “[b]ased on the data, the Company does not plan any further development of [SAGE-718] in PD.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on July 24, 2024, Sage disclosed that a Phase 2 study of Sage-324 for the treatment of essential tremor (“ET”) “did not demonstrate a statistically significant dose-response relationship in change from baseline to Day 91 based on the primary endpoint” and “there were no statistically significant differences demonstrated for any dose of SAGE-324 versus placebo[.]” Due to the results, the Company stated that it would close the ongoing study and did “not plan to conduct further clinical development of SAGE-324 in ET.” On this news, Sage’s stock price fell $2.70, or 20.6%, to close at $10.38 per share on July 24, 2024, thereby injuring investors further. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Sage Therapeutics, Inc. (NASDAQ: SAGE) from April 12, 2021 through July 23, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.