{"id":25855,"date":"2026-06-24T22:18:00","date_gmt":"2026-06-24T20:18:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=3a4eec4c7405a73e176942c9934d45ab"},"modified":"2026-06-24T22:18:00","modified_gmt":"2026-06-24T20:18:00","slug":"kadima-neuropsychiatry-institute-files-suit-against-nrx-pharmaceuticals-nasdaq-nrxp-alleging-breach-of-contract-and-misrepresentation-in-connection-with-acquisition","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=25855","title":{"rendered":"Kadima Neuropsychiatry Institute Files Suit Against NRx Pharmaceuticals (NASDAQ: NRXP), Alleging Breach of Contract and Misrepresentation in Connection with Acquisition"},"content":{"rendered":"

\nComplaint filed in San Diego County Superior Court seeks specific performance, alleging NRx warranted it had funds to close while concealing it lacked committed financing for the transaction.<\/i><\/p><\/a><\/a>

SAN DIEGO--(BUSINESS WIRE)--Kadima Neuropsychiatry Institute and its founder, Dr. David Feifel, have filed a complaint against NRx Pharmaceuticals, Inc. (NASDAQ: NRXP) and two of its subsidiaries in San Diego County Superior Court, alleging breach of contract and misrepresentation in connection with an acquisition agreement that the defendants warranted they had the financial capacity to close. The planned transaction represents a significant percentage of NRx\u2019s current market capitalization.<\/p>

\nThe complaint names NRx, its subsidiary Hope Therapeutics Inc., and Hope\u2019s subsidiary HTX Management Company LLC as defendants. It seeks specific performance in a court order compelling the defendants to close the transaction on the terms set forth in the parties\u2019 executed agreement.<\/p>

\n\u201cWe are confident that the evidence will demonstrate a clear pattern of intentional deceit by NRx, as it used Kadima\u2019s and Dr. Feifel\u2019s reputations to boost its share price through press releases and joint investor presentations, but then refused to fulfill its commitment to close the transaction,\u201d said Andrew Selesnick, counsel to Kadima and a partner at Buchalter LLP. \u201cThough confidentiality clauses in the agreement prohibit us from disclosing certain transaction details in a public filing, we look forward to presenting the complete set of facts in court.\u201d<\/p>

\nDr. Feifel, an internationally recognized leader in the field of interventional psychiatry and professor emeritus at the University of California, San Diego, left academia to found Kadima in 2017. He has since grown it into one of California\u2019s leading practices and research centers specializing in advanced treatments for mental health conditions.<\/p>

\nAccording to the complaint, NRx Chairman Dr. Jonathan Javitt approached Dr. Feifel in 2024 with a proposal to acquire Kadima and have Dr. Feifel join Hope as Chief Medical Innovation Officer, providing repeated assurances that financing was already secured. When the parties executed an Asset Purchase and Contribution Agreement on May 9, 2025, the contract included an express representation that the purchaser had \u201csufficient cash on hand or other sources of immediately available funds\u201d to close the transaction.<\/p>

\nThe complaint further notes that NRx\u2019s January 2, 2025 press release, which announced Kadima as its planned flagship acquisition and did not reference any financing contingency, caused NRx stock to surge more than 40% in a single day. Additional press releases citing Dr. Feifel\u2019s credentials and planned investor conference appearances followed in the months leading up to the purchase agreement execution, repeatedly boosting NRx shares.<\/p>

\nAccording to the complaint, NRx\u2019s representations regarding the availability of financing for the Kadima closing were materially inconsistent across the executed purchase agreements, its public statements, private communications, and SEC filings throughout the period leading up to and following execution of the agreement:<\/p>