The Cassava Sciences class action 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. 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.
The alleged class includes : All persons and entities that purchased or otherwise acquired Cassava securities between September 14, 2020 and August 27, 2021, inclusive. This class definition has been updated to reflect the expanded class period and class definition set forth in the follow-on case Newell v. Cassava Sciences, Inc. et al. The original class definition for the lead case was: All purchasers of the common stock of Cassava between February 2, 2021 and August 24, 2021, inclusive.
For More information as well as to join this case please contact Atara Twersky, Esq. at [email protected] or [email protected]. Atara is Principal at Twersky Law Group and Of counsel at AF&T law firm where she is director of Investor Services. Atara focuses her practice on assisting her clients with increasing their investment portfolio recoveries and ensuring that their portfolios remain healthy and robust. For more information on shareholder recoveries click here and to listen to Atara’s podcast with notable guests in the Pension fund Industry listen to Pension and Investments Podcast, on all matters related to your investment portfolio and more. For more information on Atara and her legal work connected to shareholder protection click here