BioXcel Therapeutics $9.75M Class Action Settlement

Investors who purchased or otherwise acquired BioXcel Therapeutics Inc. common stock between March 9, 2023, and June 28, 2023, may be eligible to claim a cash payment from a class action settlement.

BioXcel Therapeutics Inc. and certain executives agreed to pay $9.75 million to settle a securities class action lawsuit alleging they made materially false and misleading statements and omissions concerning the TRANQUILITY II clinical trial and compliance with clinical trial protocols and Food and Drug Administration regulations.

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired BioXcel Therapeutics Inc. publicly traded securities during the class period of March 9, 2023, through June 28, 2023, inclusive, experienced damages as a result.

Additional details

• Both individuals and entities can be class members.
• The actual beneficial purchaser or a legal representative must submit the claim.
• All joint purchasers must sign the claim form.
• Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide proof of authority.

How much can class members get?

The total settlement fund is $9,750,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of shares purchased or acquired during the class period
• The timing of each purchase, sale and holding
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• The estimated average recovery is approximately $1.52 per share before deductions for court-approved fees and expenses. After estimated deductions, the average cost per share is $0.42, resulting in a net average recovery of approximately $1.10 per share.
• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
• Recognized loss amounts depend on purchase and sale timing. The settlement administrator will calculate them using the court-approved plan of allocation.
• For shares purchased during the class period and held at the end of trading on June 28, 2023, the recognized loss is $11.28 per share.
• For shares purchased during the class period and sold before June 29, 2023, the recognized loss is $0.

• If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim a BioXcel securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form (Page 15 of the settlement notice) and mail it to the settlement administrator. The claim deadline is June 30, 2026.

Settlement administrator's mailing address: Hills et al. v. BioXcel Therapeutics Inc., et al., c/o Strategic Claims Services, 600 N. Jackson St., Suite 205, P.O. Box 230, Media, PA 19063

Proof or documentation required to submit a claim

All class members must provide their Social Security number or taxpayer identification number. They must also provide purchase, acquisition and sale information, including:

• Number of shares of BioXcel common stock held as of the close of trading on March 8, 2023
• Trade dates for purchases and sales through June 28, 2023
• Number of shares purchased or sold
• Price per share and total purchase or sale price
• Number of shares held as of the close of trading on June 28, 2023

Class members must also provide documentation to support their transactions in BioXcel securities. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Other documentation containing the transactional information found in a confirmation slip

Payout options

• Physical check

$9.75 million settlement fund

The $9,750,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $2,437,500
• Attorneys' expenses: Up to $225,000
• Service awards to class representatives: Up to $30,000 total
• Payments to eligible class members: Remainder of the fund

Important dates

• Deadline to file a claim: June 30, 2026
• Opt-out deadline: Aug. 5, 2026
• Fairness hearing: Sept. 2, 2026

When is the BioXcel securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged BioXcel Therapeutics Inc. and certain executives made materially false and misleading statements and omissions concerning the TRANQUILITY II clinical trial and compliance with clinical trial protocols and FDA regulations. The plaintiffs claimed these statements artificially inflated BioXcel's stock price and caused investor losses when the company revealed the truth.

The defendants denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.

Sources

1. Class notice
2. Claim form