Gibbs Law Group Investigates Potential Securities Law Violations

Athira Pharma, Inc. shares plunged nearly 39% on Friday, June 18, 2021 after the company reported that it was placing president and CEO Leen Kawas on leave, pending a board review of “actions” stemming from Dr. Kawas’s work as a doctoral student. Gibbs Law Group is investigating a potential Athira Class Action Lawsuit on behalf of investors who lost money in Athira Pharma, Inc. (NASDAQ: ATHA).

To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.

On Thursday, June 17, 2021, neurological drug company Athira Pharma announced it was placing its president and CEO Leen Kawas on leave while its board formed an independent special committee to review her doctoral research from her time at Washington State University. The school opened its own investigation into “potential research misconduct” by Dr. Kawas the next day. According to Barron’s, Athira was founded by Kawas and colleagues from Washington State University based on the research she and others did there.

The Seattle Times reports that online commenters had previously raised concerns about her lab result images on PubPeer, a forum featuring discussions on scientific papers. One commenter, Dr. Elisabeth Bik, told The Seattle Times some results looked like they may have been "photoshopped."

According to Barron’s, a Stifel analyst addressed the potential impact to the company in a note, stating: “The scientific hypothesis behind Athira came out of the work [that] Dr. Kawas did in graduate school so there is risk here that whatever comes out of this investigation could have clear negative implications for how we/investors view the asset, and/or management credibility.”

Following this news, Athira’s stock price dropped nearly 39% at the close of June 18, 2021, causing significant harm to investors.

What Should Athira Investors Do?

If you invested in Athira, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Athira Pharma, Inc. has violated federal securities laws by providing false or misleading statements to investors.

About Gibbs Law Group

Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”

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