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 California on behalf of those who acquired Vaxart, Inc. (“Vaxart” or the “Company”) (NASDAQ: VXRT) securities during the period from June 25, 2020 through July 25, 2020 (the “Class Period”). Investors have until October 23, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The class action arises from Defendants’ alleged fraudulent scheme to profit from artificially inflating the Company’s stock price by announcing false and misleading information concerning Vaxart’s oral COVID-19 vaccine candidate. Specifically, the Complaint alleges that on June 26, 2020, Vaxart issued a press release entitled, “Vaxart’s COVID-19 Vaccine Selected for the U.S. Government’s Operation Warp Speed,” falsely claiming its vaccine had been selected to participate in a non-human challenge study organized and funded by OWS. This announcement sent the price of Vaxart shares rocketing high. In furtherance of the scheme, Defendants amended controlling shareholder Armistice’s existing warrant agreements, allowing Armistice to exercise all of its warrants immediately and sell 27.6 million Vaxart shares, reaping profits of approximately $200 million. Defendants also issued millions of dollars in favorable stock options to Vaxart’s most senior executives. The Complaint alleges that on July 25, 2020, details emerged revealing Defendants’ deception concerning their alleged pump and dump scheme. In particular, on July 25, 2020, The New York Times published an article entitled, “Corporate Insiders Pocket $1 Billion in Rush for Coronavirus Vaccine,” covering suspiciously timed stock bets that had generated significant profits for senior executives and board members at companies developing vaccines and treatments. Vaxart was featured prominently in the article, and it clarified “Vaxart is not among the companies selected to receive significant financial support from Warp Speed.” In response to this news, the price of Vaxart shares dropped sharply lower on July 27, 2020 from $12.29 to $11.16.
If you acquired Vaxart securities during the Class Period, have information, or would like to learn more about these claims, please contact Kirby McInerney by email at firstname.lastname@example.org or by filling out this contact form to discuss your rights or interests with respect to these matters without any cost to you.