Vaxart ($VXRT) Operation Warp Speed and Vaccine Manufacturing Claims Case

The court has ruled on whether the plaintiffs are certified as a class.

N.D. California

Court

3:20-cv-05949

Case number

06/15/2020

Class period Start

08/19/2020

Class period End

$VXRT investors filed a claim against Vaxart for allegedly overstating its COVID-19 vaccine progress, claiming it could make a billion or more doses, and suggesting it had been selected for Operation Warp Speed when it had not.
After Business Insider quoted Operation Warp Speed’s leader saying some biotechs had misled shareholders by invoking the program, $VXRT fell 4.3% on August 20, 2020.
$VXRT investors can join this case to be notified about potential recovery.
Case Details:

Between June 15, 2020 and August 19, 2020, Vaxart told investors its oral COVID-19 vaccine program was advancing rapidly and moving toward large-scale production. Executives emphasized that Phase 1 could start in summer 2020, manufacturing was in place, Attwill could make a billion or more doses per year, and Vaxart had been selected for Operation Warp Speed.

However, during this period, investors allege insiders were using a rapid series of announcements to inflate interest in Vaxart while Armistice was preparing to sell almost all of its holdings. Vaxart allegedly failed to disclose it had not actually been selected for Operation Warp Speed funding and had only been invited to participate in a preliminary non-human primate study.

Attwill lacked the FDA certifications, staffing, and operational ability to make a billion or more vaccine doses, and Vaxart was not ready to file its IND by June or begin human studies that summer.

Then, on July 25, 2020, a New York Times article reported that Vaxart was not among the companies selected to receive significant Operation Warp Speed financial support and that HHS had neither funded Vaxart nor negotiated with it to do so. $VXRT fell 9%, closing at $11.16. 

Additional revelations followed on August 19, 2020, including a Business Insider interview in which Operation Warp Speed head Moncef Slaoui said some biotechs had misled shareholders by using Operation Warp Speed in press releases. 

By August 20, 2020, shares had dropped to $8.81, representing a total decline of 21.1% over the correction period.

Based on these events, $VXRT investors filed a claim against Vaxart, alleging the company:
It falsely linked its vaccine to Operation Warp Speed.
It overstated how ready its vaccine was for manufacturing and clinical testing, including the claim that Attwill could make a billion or more doses.
It hid facts that investors allege made the June 2020 press campaign misleading, while insiders sold heavily into the market reaction.
Investors argue Vaxart misled the market about its Operation Warp Speed status, manufacturing readiness, and near-term vaccine progress, causing losses when the truth emerged.

Case Type

US Securities Class Action

Case Status

Class Certification result

Alleged Offence

Misleading Statements,

Fraud,

Failure to Disclose,

Price manipulation,

Insider Trading,

Omissions

Suspected Party

Directors,

Management,

Hedge Fund

Security Type

Stocks

Trade Direction

Long

Shock Event Date

06/30/2020

Filing date

08/24/2020

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