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SAVA.US

id: 1092

Cassava Sciences ($SAVA) $31.25 Million Investor Settlement

The settlement terms have been submitted to the court for approval.

$31,250,000

Cash Settlement

W.D. Texas

Court

1:21-cv-00751

Case number

09/14/2020

Class period Start

10/13/2023

Class period End

Cassava Sciences has agreed to a proposed $31.25 million settlement to resolve investor claims that it misled the market about simufilam’s supporting research, data-management controls, and the drug’s prospects.

Outline:

From 2020 into 2023, Cassava promoted simufilam and the research behind it as credible and promising. Investors say the company failed to disclose serious problems with data management and the reliability of research tied to the drug’s effectiveness. On October 12, 2023, Science reported that a professor linked to simufilam faced a CUNY investigation and that a committee found strong evidence of deliberate scientific misconduct. $SAVA fell 15% the next day, and the case has now moved to a proposed $31.25 million settlement.

Timeline:
October 12, 2023: Science reported that a professor linked to simufilam was facing a CUNY investigation over potential data manipulation.
October 13, 2023: $SAVA fell 15% after the report.
June 18, 2026: The parties agreed to settle the case for $31.25 million.
Background:

Cassava was developing simufilam as a potential Alzheimer’s treatment and presented the program as supported by credible research and strong prospects.

Investors say that the picture was misleading. According to the text provided, the company failed to disclose problems with data-management controls and the reliability of research tied to simufilam’s claimed effectiveness.

Those concerns came into sharper focus on October 12, 2023, when Science reported that a professor linked to simufilam was facing a CUNY investigation. The report said the university was examining long-standing and egregious misconduct in data management and record-keeping and that a committee found strong evidence of deliberate scientific misconduct after being unable to access raw data.

Investors say that disclosure raised serious doubt about the research supporting simufilam and the company’s prior statements about the drug’s prospects. $SAVA fell 15% the next day, and the parties have now agreed to a proposed $31.25 million settlement.

What Can Investors Expect Now?

Cassava Sciences has agreed to a proposed $31.25 million settlement to resolve investor claims that it misled the market about simufilam’s supporting research, data-management controls, and the drug’s prospects.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

US Securities Class Action

Case Status

Stipulative Settlement

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.3

Filing date

02/02/2024

Lead Plaintiff Deadline

04/02/2024

Plaintiffs

Cassandra Baker

Attorneys

Bronstein, Gewirtz & Grossman LLC

Defendants

Remi Barbier, Eric J. Schoen

Judge

David A. Ezra

Administrator

Verita Global

Attorney fee

$11,125,000

Trades matching type

FIFO

Frequently Asked Questions

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