Anavex Life Sciences Corp (AVXL)

[boi568]

I have read the Complaint. It is a rehash of Anavex not giving blow-by-blow updates to its endpoint methodologies in AVATAR and EXCELLENCE. It claims, but in no way demonstrates, bad intent on the part of the company. Early in the Complaint the plaintiffs admitted they expect to demonstrate this through discovery, so they presently have nothing.

The Complaint makes no attempt to demonstrate how Anavex's stock price was inflated by the changing versions of its Rett trial endpoints. I would be interested, for example, in seeing how these plaintiffs are going to gather affidavits from stockholders to the effect of "I would never have bought Anavex stock had I known that the EXCELLENCE study was going to use RSBQ and CGI-I as co-primary endpoints instead of RSBQ AUC anchored to CGI-I." It's ridiculous.

The Complaint also seems to overlook the effect on the stock price of the Anavex PR on EXCELLENCE not meeting endpoints, choosing instead to blame changed methodology as the reason for the stock's subsequent decline. Again, ridiculous.

At least the plaintiffs didn't quote Feuerstein in the Complaint.

This is no more than a nuisance case. It either settles for low five figures, or is dismissed on a motion for failure to state a claim. Meanwhile, the shorts get to harass the company on this disguised pressrelease.