BioXcel Turns Back Investors’ Suit Over FDA’s Drug Study Qualms

BioXcel Therapeutics Inc. investors failed to show company executives intentionally misled them about an FDA probe of research studying a potential agitation treatment for Alzheimer’s patients, a federal court ruled.

The investors adequately alleged in their proposed class suit that two statements were false or misleading, but fell short on showing the falsity of the rest of the challenged statements, Judge Sarala V. Nagala said Thursday for the US District Court for the District of Connecticut. And their allegations about stock sales, along with circumstantial evidence and the accounts of confidential witnesses, weren’t enough to show the necessary level of ...