Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Western District of Texas on behalf of shareholders of Cassava Sciences, Inc. who purchased shares between September 14, 2020 and August 27, 2021.
Cassava and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On August 24, 2021, it was disclosed that the U.S. Food and Drug Administration (“FDA”) had received a so-called Citizen Petition commencing an administrative action to “halt two ongoing trials of the drug Simufilam [the Company’s lead therapeutic product candidate]. . . pending a thorough audit by the FDA.” On August 25, 2021, pre-market, the Company issued a statement claiming that the clinical data, which the citizen petition stated had been reanalyzed to show simufilam was effective, had been generated by Quanterix Corp. (“Quanterix”), an independent company, implying that the reanalysis was valid. On this news, the Company’s stock price plummeted approximately $37 per share, or 32%, on unusually high trading volume.
Then, on August 27, 2021, pre-market, Quanterix issued a statement denying the Company’s claims, stating that it “did not interpret the test results or prepare the data.” On this news, the Company’s stock price fell $12.51 per share, or 17.6%, to close at $58.34 per share on August 27, 2021, on unusually heavy trading volume.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until October 26, 2021 to request that the court appoint them lead plaintiff.