In re VAXART, INC. SECURITIES LITIGATION.

Vaxart Inc. (VXRT) agreed to pay $12 million to settle a securities class action lawsuit.

The complaint alleged a 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 alleged 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.

The Complaint alleged that on July 25, 2020, details emerged revealing the Company and its Leaders' 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.”

Vaxart (VXRT) agreed to settle with investors to avoid further litigation.