NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Cassava Sciences, Inc. (“Cassava” or the “Company”) (NASDAQ: SAVA) in the United States District Court for the Western District of Texas on behalf of all persons and entities who purchased or otherwise acquired Cassava securities between February 2, 2021 and August 24, 2021, both dates inclusive (the “Class Period”). Investors have until October 26, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
Cassava Sciences’ lead therapeutic product candidate during the Class Period was simufilam, a small molecule drug designed to treat Alzheimer’s disease. On February 2, 2021, Cassava Sciences announced results from its interim analysis of an open-label study of simufilam, which purportedly demonstrated that patients’ cognition and behavior scores both improved following six months of simufilam treatment, with no safety issues. As the market digested this ostensibly great news, the market price of Cassava Sciences common stock increased and Cassava Sciences immediately cashed in on the stock price inflation, issuing and selling more than four million shares of its common stock at $49 per share on February 12, 2021 through an underwritten follow-on public stock offering and reaping more than $200 million in gross proceeds.
On August 24, 2021, it was disclosed that the FDA had received a so-called Citizen Petition commencing an administrative action to “halt two ongoing trials of the drug [s]imufilam . . . pending a thorough audit by the FDA.” As detailed in the Citizen Petition, “[i]nformation available to the petitioner . . . raises grave concerns about the quality and integrity of the laboratory-based studies surrounding this drug candidate and supporting the claims for its efficacy.” After summarizing its findings, the Citizen Petition went on to conclude that “the extensive evidence set forth in the enclosed report, which presents grave concerns about the quality and integrity of the scientific data supporting Cassava [Sciences’] claims for [simulfilam]’s efficacy, provides compelling grounds for pausing the ongoing clinical trials until the FDA can conduct and complete a rigorous audit of Cassava [Sciences’] research.” On this news, the price of Cassava Sciences common stock fell approximately 32%, damaging investors.
On this news, Cassava's stock price fell $36.97, to close at $80.86 per share on August 25, 2021.
The lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) the quality and integrity of the scientific data supporting Cassava Sciences’ claims for simulfilam’s efficacy had been overstated; (ii) the scientific data supporting Cassava Sciences’ claims for simulfilam’s efficacy were biased; and (iii) as a result, defendants’ positive statements during the Class Period about Cassava Sciences’ business metrics and financial prospects and the likelihood of U.S. Food Drug Administration (“FDA”) approval were false and misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Cassava Sciences shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
