Zevra Therapeutics, Inc.
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
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CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
On March 29, 2024, Zevra submitted a Current Report on Form 8-K to the United States Securities and Exchange Commission. This report disclosed that on March 25, 2024, Zevra’s Audit Committee, in collaboration with the company’s senior management and independent accountants, determined that the financial statements for the fiscal years ending December 31, 2022, and December 31, 2021, as presented in the Annual Report on Form 10-K for the year ended December 31, 2022, should no longer be considered accurate. This conclusion was reached during the preparation of the Annual Report for the fiscal year ended December 31, 2023, when the Audit Committee recognized errors in the accounting of certain common stock warrants as liabilities in previous years.
These inaccuracies resulted in the understatement of liabilities related to derivatives and warrants, as well as discrepancies in additional paid-in capital and the valuation of derivative and warrant liabilities over the affected periods. Furthermore, Zevra acknowledged that these errors led to misstatements in the valuation adjustments related to derivatives and warrants, liabilities, additional paid-in capital, and accumulated deficit as reported in the unaudited condensed consolidated balance sheets and income statements included in the Quarterly Reports on Form 10-Q for the quarters ending March 31, 2022, June 30, 2022, September 30, 2022, March 31, 2023, June 30, 2023, and September 30, 2023. Consequently, on March 25, 2024, the Audit Committee, after discussions with the management and accountants, concluded that these interim financial statements were unreliable.
Following this announcement, Zevra’s share price dropped by $0.64, or 11.03%, to close at $5.16 on April 1, 2024, the subsequent trading day.
