Axsome’s $7.75 Million Investor Settlement Gets Court Sendoff

Axsome Therapeutics Inc.‘s $7.75 million accord earned a federal judge’s blessing to resolve investor allegations it hid complications on the road to regulatory approval for its migraine drug.

Judge Lorna G. Schofield finalized a settlement class of those who acquired Axsome stock from May 10, 2021, through April 22, 2022, while granting final approval of the deal Thursday. The agreement greenlit by the US District Court for the Southern District of New York ends nearly four years of litigation over whether Axsome misled investors over its progress toward getting the US Food and Drug Administration’s imprimatur.

• The investors’ counsel ...