Major MindMed investor calls for federal investigation

Major MindMed investor calls for federal investigation


SHERIDAN, Wyo., Nov. 03, 2022 (GLOBE NEWSWIRE) — Today, FCM MM HOLDINGS, LLC (“FCM”) notifies shareholders that it has formally filed a complaint (the “Complaint”) with the Securities and Exchange Commission ( the “SEC”) and will file a referral with the Department of Justice regarding allegations against Mind Medicine (MindMed) Inc. (NASDAQ:MNMD) (“MindMed”, the “Company”). The complaint focuses on the following allegations: self-dealing, lack of material disclosure, misrepresentation/fraud of public statements and, if the allegations are true, criminal activity by CEO Robert Barrow under Sarbanes-Oxley.

The Complaint presents and analyzes the allegations made in the Freeman v. Burbank et al. (the “Claim”) that MindMed’s intellectual property was mistreated as a result of a unilateral deal (the “Deal”) made by Mr. Stephen Hurst, then CEO of MindMed, and Mr. Carey Turnbull, CEO of Ceruvia Lifesciences LLC (” Ceruvia “). Mr. Hurst founded Ceruvia’s predecessor, ostensibly in secret. If the deal goes through, Ceruvia will have secret freedom to operate on MindMed’s intellectual property related to LSD and its derivatives, and MindMed will not be able to research or compete with BOL-148. The complaint also lists Ceruvia executives who worked for MindMed concurrently during Messrs. Hurst and Barrow’s tenure, and the impact on MindMed’s intellectual property and trade secrets.

In addition, the Complaint examines whether MindMed has adequately disclosed to investors the significant risk of MM-110’s failure to obtain full product approval from the Food and Drug Administration (“FDA”). After MindMed discontinued the MM-110 program in August 2022, FCM conducted a rigorous review of the publicly available data from MM-110, a core MindMed drug, primarily from the patent application of MM-110 and the Phase I protocol. Study (the “Study”) available prior to the start of the Study. The complaint addresses FCM’s conclusion that it is highly unlikely that…

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