Athira Pharma, Inc.

Case Details

Class Period: September 18, 2020 - June 17, 2021
Date Filed: June 25, 2021
Case Number: 2:21cv00861
Jurisdiction: Washington Western District Court
icon-casetype Case Type: Securities Case
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Case Summary

On June 17, 2021, after the markets closed, Athira announced that the company’s board had placed its president and CEO, Leen Kawas, on temporary leave pending their investigation of “actions stemming from doctoral research Dr. Kawas conducted while at Washington State University.” According to one investment analyst, the scientific basis for Athira came out of the work Kawas and her colleagues developed at Washington State and this news could have “clear negative implications for how we/investors view the asset, and/or management credibility.” Healthcare news outlets also cited concerns that images in academic articles published by Kawas could have been manipulated. On this news, Athira’s stock price fell $7.09 per share, or nearly 39%, to close at $11.15 per share on June 18, 2021, on unusually heavy trading volume.