Axsome Therapeutics $7.75M Securities Lawsuit Settlement

Shareholders who purchased or otherwise acquired Axsome Therapeutics Inc. (NASDAQ: AXSM) common stock between May 10, 2021, and April 22, 2022, and suffered damages may be eligible to claim a cash payment from a class action settlement.

Axsome Therapeutics Inc. agreed to pay $7,750,000 to settle a class action lawsuit alleging it and certain executives made materially false and misleading statements about its drug candidate AXS-07, its New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA), and related manufacturing issues.

The lawsuit claimed these statements artificially inflated Axsome’s stock price and caused investor losses when corrective information emerged.

Who is eligible to file a claim?

Class members must meet all of the following criteria:

• They purchased or otherwise acquired Axsome Therapeutics Inc. common stock between May 10, 2021, and April 22, 2022, inclusive.
• They suffered financial losses as a result of the alleged violations of federal securities laws.

Additional Information

• Both individuals and entities can be class members.
• Financial institutions or nominees that purchased Axsome shares for others must, within 10 days, either forward the notice to those investors or give their contact details to the claims administrator.

How much is the securities payout?

The total settlement fund is $7,750,000. The amount each class member may receive depends on several factors:

• The total number of valid claims filed
• The number of shares purchased or sold
• The timing of each purchase and sale during the class period
• The total recognized losses of all claimants

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

• The estimated average recovery, before deduction of court-approved fees and expenses, is approximately $0.46 per share of Axsome common stock.
• The estimated average recovery, after deductions for attorneys’ fees, expenses, taxes, and notice and administration costs, is approximately $0.30 per share.
• The settlement administrator calculates each claimant’s award using formulas in the plan of allocation that consider when the claimant purchased, sold, or held Axsome shares during periods of alleged artificial inflation.
• Recognized losses are determined based on when shares were purchased and sold:
• Shares sold before April 25, 2022, have a recognized loss of $0 per share.
• Shares sold between April 25, 2022, and July 22, 2022 (the 90-day lookback period) have a recognized loss equal to the lesser of $9.61 per share or the purchase price minus the 90-Day lookback value on the date of sale.
• Shares held as of the close of trading on July 22, 2022, have a recognized loss equal to the lesser of $9.61 per share or the purchase price minus $32.07 (the average closing price during the 90-day lookback period).

• The settlement administrator will reduce payments on a pro rata basis if total recognized losses exceed the fund.
• Claimants whose calculated payment would be less than $10 will not receive a payout.

How to claim a settlement payment

Class members can file a claim online or download, print, and complete the PDF claim form (Page 15) and mail it to the settlement administrator. The claim deadline is Feb. 3, 2026.

Settlement administrator's mailing address: Axsome Therapeutics Inc., Securities Litigation, c/o Strategic Claims Services, 600 N. Jackson St., Ste. 205, P.O. Box 230, Media, PA 19063

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or their full taxpayer identification number.

They must also provide purchase, acquisition, and sale information, including:

• Trade dates
• Number of shares purchased, acquired, or sold
• Total purchase, sale, or acquisition price

Claimants must include documentation to support their transactions in Axsome common stock. Acceptable forms of proof include:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing the same information found in a confirmation slip
• Other documentation the claims administrator deems adequate

$7.75 million settlement fund

The settlement fund of $7.75 million will cover all payments to eligible class members, attorneys’ fees, litigation expenses, service awards to lead plaintiffs, notice and administration costs, and taxes.

The $7,750,000 settlement fund includes:

• Notice and administration costs: To be determined
• Attorneys’ fees: Up to $2,325,000
• Attorneys’ expenses: Up to $250,000
• Service awards to lead plaintiffs: Up to $30,000, total
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline to request exclusion: Jan. 13, 2026
• Deadline to file a claim: Feb. 3, 2026
• Fairness hearing: Feb. 10, 2026

When is the Axsome Therapeutics securities settlement payout date?

Payments will be made after the court grants final approval of the settlement and any appeals are resolved. This process may take more than a year after the settlement hearing.

Why is there a class action settlement?

The class action lawsuit alleged Axsome Therapeutics and certain executives violated federal securities laws by making false or misleading statements about its drug candidate AXS-07, its NDA to the FDA, and related manufacturing issues. The plaintiffs claimed these misrepresentations artificially inflated the company’s stock price and caused losses when the truth was revealed. The defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the costs, risks, and delays of further litigation.

Sources

1. Class notice