Axsome Hid Problems Affecting Migraine Drug Approval, Suit Says

Axsome Therapeutics Inc. executives and board members made misleadingly optimistic public statements about the company’s FDA application for new migraine drug AXS-07, leading to a 22% stock drop when the agency released its analysis, a shareholder says in a derivative suit filed in federal court in New York.

The harm to the drugmaker includes the expense of settling a pending shareholder class action; impairment to its business, goodwill, and reputation; and the costs of a “liar’s discount” in raising capital or handling debt, Daniel Engel says on behalf of the company. His suit was filed Thursday in the US ...