Amylyx Will Battle Investor Suit Over Revoked ALS Treatment (1)

Amylyx Pharmaceuticals Inc. and top executives failed to shake proposed class allegations that they overstated its now-withdrawn treatment’s commercial potential within the ALS community to investors.

The suing shareholder alleged a sufficient inference the top brass had access to data tracking a high number of discontinuations, in this case contradicting alleged misstatements about its opportunity to attract new patients, Judge Nathaniel M. Gorton said in an order entered Thursday.

The Food and Drug Administration approved Relyvrio to treat amyotrophic lateral sclerosis, a deadly neurological disease, in 2022 while a third-phase study was pending.

Investor Oliver Shih adequately pleaded rosy projections ...