Cassava Sciences, Inc.
Case Overview
6 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 04/02/2024 |
Status: | Status: Investigating |
Company Name: | Company Name: Cassava Sciences, Inc. |
Court: | Court: Northern District of Illinois |
Case Number: | Case Number: 1:24cv00977 |
Class Period: | Class Period: 08/18/2022 - 10/12/2023 |
Ticker: | Ticker: SAVA |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Texas on behalf of those who acquired Cassava Sciences, Inc. (“Cassava” or the “Company”) (NASDAQ: SAVA) securities from August 18, 2022 through October 12, 2023, inclusive (the “Class Period”). Investors have until April 2, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
In March 2020, Cassava initiated a study to evaluate the long-term safety and tolerability of its lead therapeutic drug candidate (or "simufilam") in the dosage 100 mg, twice daily for 12 or more months in patients with Alzheimer's disease. In August 2021, a Citizen Petition requested the United States Food & Drug Administration ("FDA") to halt any phase 3 trials of simufilam due to concerns regarding data manipulation. Specifically, the Citizen Petition referenced "grave concerns about the quality and integrity of the laboratory-based studies surrounding this drug candidate and supporting the claims for its efficacy." In response, Cassava denied the allegations in the Citizen Petition and touted the effectiveness of simufilam and the efficacy of the Company's research programs, stating that it "stands behind its science, its scientists and its scientific collaborators" in a press release shortly thereafter.
On October 12, 2023, the peer-reviewed academic journal Science reported that Professor Hoau-Yan Wang ("Dr. Wang"), a City University of New York researcher associated with the research program for simufilam, had been investigated by university officials for possible data manipulation. Although the investigative committee did not have access to the raw data at issue and thus was unable to confirm that data manipulation had occurred, members made their conclusion based on "long-standing and egregious misconduct in data management and record keeping by Dr. Wang" and "found evidence highly suggestive of deliberate scientific misconduct" by Dr. Wang. On this news, the price of Cassava's shares declined by $2.68 per share, or approximately 15.28%, from $17.54 to close at $14.86 per share on October 13, 2023.
The lawsuit alleges that throughout the Class Period, Cassava made false and/or misleading statements and/or failed to disclose that: (i) the Company failed to maintain adequate and effective data management controls and procedures related to its drug research programs; (ii) as a result, the data published in support of simufilam were susceptible to manipulation to overstate the drug's effectiveness; and (iii) accordingly, Cassava had misrepresented the efficacy of its research programs and the clinical and/or commercial prospects of simufilam.
In March 2020, Cassava initiated a study to evaluate the long-term safety and tolerability of its lead therapeutic drug candidate (or "simufilam") in the dosage 100 mg, twice daily for 12 or more months in patients with Alzheimer's disease. In August 2021, a Citizen Petition requested the United States Food & Drug Administration ("FDA") to halt any phase 3 trials of simufilam due to concerns regarding data manipulation. Specifically, the Citizen Petition referenced "grave concerns about the quality and integrity of the laboratory-based studies surrounding this drug candidate and supporting the claims for its efficacy." In response, Cassava denied the allegations in the Citizen Petition and touted the effectiveness of simufilam and the efficacy of the Company's research programs, stating that it "stands behind its science, its scientists and its scientific collaborators" in a press release shortly thereafter.
On October 12, 2023, the peer-reviewed academic journal Science reported that Professor Hoau-Yan Wang ("Dr. Wang"), a City University of New York researcher associated with the research program for simufilam, had been investigated by university officials for possible data manipulation. Although the investigative committee did not have access to the raw data at issue and thus was unable to confirm that data manipulation had occurred, members made their conclusion based on "long-standing and egregious misconduct in data management and record keeping by Dr. Wang" and "found evidence highly suggestive of deliberate scientific misconduct" by Dr. Wang. On this news, the price of Cassava's shares declined by $2.68 per share, or approximately 15.28%, from $17.54 to close at $14.86 per share on October 13, 2023.
The lawsuit alleges that throughout the Class Period, Cassava made false and/or misleading statements and/or failed to disclose that: (i) the Company failed to maintain adequate and effective data management controls and procedures related to its drug research programs; (ii) as a result, the data published in support of simufilam were susceptible to manipulation to overstate the drug's effectiveness; and (iii) accordingly, Cassava had misrepresented the efficacy of its research programs and the clinical and/or commercial prospects of simufilam.