Axsome to Settle Class Suit Over Migraine Drug for $7.75 Million

The lead plaintiffs in a class action against Axsome Therapeutics Inc. filed a motion in federal court seeking approval to settle the case for $7.75 million dollars.

Those suing alleged Axsome committed securities fraud in relation to the rollout of a migraine drug’s progress toward US Food and Drug Administration approval. The investors claim Axsome and two of its executives made positive statements about the approval timeline despite knowing about manufacturing equipment problems and the resulting supply issues.

In March, Judge Lorna G. Schofield of the US District Court for the Southern District of New York said most of their ...