Anavex Life Sciences Shareholders Invited to Join Class Action - Contact Levi & Korsinsky

Investors in Anavex Life Sciences Corporation (NASDAQ: AVXL) have been notified of a class action securities lawsuit by the law firm Levi & Korsinsky, LLP. This lawsuit aims to recover losses for investors affected by alleged securities fraud from June 21, 2021, to January 1, 2024. 

The allegations stem from an announcement made by Anavex Life Sciences on December 2, 2022, regarding their Phase 2b/3 clinical trial of the drug ANAVEX®2-73 (blarcamesine) designed to treat mild cognitive impairment and mild Alzheimer's disease. The company reported that the drug met its primary endpoints—ADAS-Cog1 and ADCS-ADL2—as well as a key secondary endpoint, CDR-SB3, with statistically significant results. However, skepticism arose when an analyst questioned the credibility of the data, citing the choice of statistical analyses and other complexities in the trial's design and execution. Furthermore, a biotech journalist criticized the company for allegedly shifting the goalposts in their clinical trials, suggesting the positive results were based on efficacy endpoints that were not part of the initial study designs.

This led to a significant drop in AVXL's stock price, which fell by $2.47 per share, or roughly 20%, closing at $9.58. The situation further deteriorated on January 3, 2024, when Anavex Life Sciences announced that their Phase 2/3 EXCELLENCE trial, testing ANAVEX®2-73 in pediatric patients with Rett syndrome, failed to achieve statistical significance in its primary endpoints. In response to this announcement, biotech analysts remarked that the negative outcome of the study was predictable and accused Anavex of habitually misrepresenting their clinical trial results. Consequently, the company's stock price plunged by an additional $3.26 per share, approximately 35%.

Investors who suffered losses during this period have until May 13, 2024, to request the Court to appoint them as lead plaintiffs. Importantly, participation as a lead plaintiff is not mandatory for sharing in any potential recovery. Class members can seek compensation without incurring any out-of-pocket costs or fees.

Levi & Korsinsky, LLP, the firm handling the lawsuit, has a notable track record of securing substantial settlements for shareholders. Over the last two decades, they have won hundreds of millions of dollars for their clients. The firm specializes in complex securities litigation and employs a team of over 70 professionals. Consistently, for seven consecutive years, Levi & Korsinsky has been recognized in ISS Securities Class Action Services' Top 50 Report, establishing itself as one of the leading securities litigation firms in the United States.

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