March 24, 2016 (Shareholders Foundation) - An investigation on behalf of investors of SAGE Therapeutics Inc (NASDAQ:SAGE) shares over potential securities laws violations by SAGE Therapeutics and certain of its directors and officers in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of SAGE Therapeutics Inc (NASDAQ:SAGE) concerning whether a series of statements by SAGE Therapeutics regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

On March 23, 2016, Kerrisdale Capital published a report on SAGE Therapeutics Inc asserting that Sage Therapeutics lead experimental product candidate SAGE-547, designed to treat a condition called for super-refractory status epilepticus (SRSE)is not a novel breakthrough as SAGE Therapeutics Inc claimed but rather little more than a Band-Aid, achieving, at best, a temporary reduction in brain activity very similar to many other treatments that doctors already use. The report also asserts that Sage Therapeutics is overestimating the size of the drugs target market by perhaps a factor of 6 which questions the drug's commercial projections if the drug is ultimately approved.

Shares of SAGE Therapeutics Inc (NASDAQ:SAGE) declined from as high as $85.48 per share in June 2015 to as low as $26.28 per share on March 23, 2016.

On March 24, 2016, NASDAQ:SAGE shares closed at $30.61 per share.