This is a securities class action on behalf of investors who purchased the American Depositary Shares (“ADSs”) of Oasmia Pharmaceutical AB (“Oasmia” or the “Company”) from October 23, 2015 through October 14, 2019 (the “Class Period”), seeking to recover damages caused by Oasmia’s and certain of its officers’ and directors’ violations of the Securities Exchange Act of 1934 (the “Exchange Act”).
Oasmia, a Swedish development-stage biotechnology company, repeatedly represented to investors in public filings that it had disclosed all related-party transactions and deficiencies in its internal controls, that it had regularly sold convertible bonds in above-board transactions, and that it had access to a credit line from Julian Aleksov, Oasmia’s CEO, and Bo Cederstrand, Aleksov’s relative. The operative complaint alleges that, aided by a compliant and reckless board, Aleksov and Cederstrand had raided Oasmia’s coffers since at least 2008 through a series of undisclosed off-the-books related-party transactions and outright theft.
When a large investor sought to replace Oasmia’s compliant board, Oasmia’s then-board fought a protracted proxy battle. The complaint alleges that facts revealed in this proxy battle caused Oasmia’s stock price to fall, but Oasmia’s then-board ultimately lost the battle. The complaint alleges that new management discovered and announced old management’s wrongdoing, causing further stock prices. Aided by a report commissioned by a Big 4 audit firm, new management then concluded and announced that old management had defrauded investors and the public markets for the entirety of the Class Period. This suit seeks to vindicate Oasmia investors’ rights and recover their substantial investment losses.
