The litigation, filed in the United States District Court for the Southern District of New York, centers on a period where Anavex repeatedly certified its disclosure controls as effective. According to the complaint, these certifications—issued in November 2025 and February 2026—masked a material weakness that only came to light following the termination of the company's CEO for cause on April 30, 2026.

Plaintiffs contend that the company’s subsequent August 2026 filings admitted the former CEO failed to enforce compliance, effectively correcting misstatements that had persisted for nearly nine months. This period of uncertainty triggered multiple stock price declines, including drops in May and August 2026. Managing partner Joseph E. Levi of Levi & Korsinsky, LLP, which is representing the class, noted that shareholders who acquired securities during this window may be eligible to recover damages regardless of whether they currently hold the shares.