BioXcel’s $9.75 Million Investor Accord Gets Initial Approval

BioXcel Therapeutics Inc.'s $9.75 million agreement to settle investor claims over a clinical trial for an Alzheimer’s treatment merits preliminary approval, a federal court ruled.

The amount—representing 14% of total recoverable damages, according to the investors—falls within a “range of reasonableness,” Judge Sarala V. Nagala said Monday for the US District Court for the District of Connecticut.

• The investors alleged BioXcel and three executives failed to disclose a Food and Drug Administration investigation into how the clinical trial for Tranquility II, a potential agitation treatment for Alzheimer’s disease patients, was being conducted
• BioXcel’s stock price fell 64% to close at ...