San Diego, CA -- (SBWIRE) -- 07/07/2021 -- An investor, who purchased NASDAQ: ATHA shares, filed a lawsuit over alleged violations of Federal Securities Laws by Athira Pharma, Inc..

Investors in shares of Athira Pharma, Inc. (NASDAQ: ATHA) have certain options and for certain investors are short and strict deadlines running. Deadline: August 24, 2021. NASDAQ: ATHA investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Bothell, WA based Athira Pharma, Inc., a late clinical-stage biopharmaceutical company, focuses on developing small molecules to restore neuronal health and stop neurodegradation.

On September 18, 2020, Athira Pharma, Inc filed its prospectus on a Form 424B4, which forms part of the Registration Statement. In the initial public offering ("IPO"), Athira Pharma, Inc sold approximately 13,397,712 shares of common stock at a price of $17.00 per share. Athira Pharma, Inc received proceeds of approximately $208.5 million from the IPO, net of underwriting discounts and commissions.

On June 17, 2021, after the markets closed, Athira Pharma, Inc announced that the company's board had placed its president and CEO, Leen Kawas, on temporary leave pending their investigation of "actions stemming from doctoral research Dr. Kawas conducted while at Washington State University." According to one investment analyst, the scientific basis for Athira Pharma, Inc came out of the work Kawas and her colleagues developed at Washington State and this news could have "clear negative implications for how we/investors view the asset, and/or management credibility." Healthcare news outlets also cited concerns that images in academic articles published by Kawas could have been manipulated.

Shares of Athira Pharma, Inc. (NASDAQ: ATHA) declined from $23.64 per share on June 7, 2021 to as low as $9.70 per share on June 18, 2021.

The plaintiff claims the Registration Statement and that between September 18, 2020 and June 17, 202, the defendants made materially false and misleading statements and omitted to state that Dr. Kawas had published research papers containing improperly altered images while she was a graduate student, that this purported research was foundational to Athira's efforts to develop treatments for Alzheimer's because it laid the biological groundwork that Athira was using in its approach to treating Alzheimer's, that as a result, Athira's intellectual property and product development for the treatment of Alzheimer's was based on invalid research, and that as a result of the foregoing, the defendants' positive statements about Athira's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Athira Pharma, Inc. (NASDAQ: ATHA) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.