NEW YORK, April 03, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Zevra Therapeutics, Inc. (Zevra or the Company) (NASDAQ: ZVRA) on behalf of Zevra stockholders. Our investigation concerns whether Zevra has violated the federal securities laws and/or engaged in other unlawful business practices.
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On March 29, 2024, Zevra filed a Current Report on Form 8-K with the United States Securities and Exchange Commission which revealed that, on March 25, 2024, the Audit Committee (the Audit Committee) of the Company's Board of Directors, after discussion with senior management and the Company's independent registered public accountants, concluded that the Company's previously issued audited consolidated financial statements as of and for the fiscal years ended December 31, 2022 and December 31, 2021, included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, (collectively, the Prior Financial Statements) should no longer be relied upon. In connection with the preparation of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the 2023 Form 10-K), the Audit Committee concluded that, in prior years it had not appropriately accounted for certain common stock warrants as liabilities.
These errors led to understatements of derivative and warrant liability and additional paid-in capital and fluctuations in fair value adjustment related to derivative and warrant liability during the impacted periods. In addition, the Company stated that it had concluded that the previously disclosed errors led to misstatements of fair value adjustment related to derivative and warrant liability, derivative and warrant liability, additional paid-in capital, and accumulated deficit that were previously disclosed in the unaudited condensed consolidated balance sheets and statements of operations included in the Company's Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2022, June 30, 2022, September 30, 2022, March 31, 2023, June 30, 2023 and September 30, 2023 (collectively, the Prior Interim Financial Statements) and that on March 25, 2024, the Audit Committee, after discussion with senior management and the Company's independent registered public accountants, concluded that the Prior Interim Financial Statements should no longer be relied upon.
On this news, Zevra's stock price fell $0.64 per share, or 11.03%, to close at $5.16 per share on April 1, 2024, the next trading day.
If you purchased or otherwise acquired Zevra shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com