NEW YORK, Oct. 24, 2021 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Cassava Sciences, Inc. (“Cassava” or the “Company”) (NASDAQ:SAVA) and reminds investors of the October 26, 2021 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Cassava stock or options between February 2, 2021 and August 24, 2021 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/SAVA.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Delaware, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that Cassava: (1) deceived the investing public regarding Cassava’s prospects and business; (2) artificially inflated the price of Cassava common stock; (3) permitted Cassava to cash in by selling $200 million of Cassava common stock at fraud-inflated prices; and (4) caused Plaintiff and other members of the Class to purchase Cassava common stock at artificially inflated prices.
On July 29, 2021, Cassava presented preliminary results from its Phase 2b clinical trial of simufilam at the Alzheimer’s Association International Conference, again purportedly demonstrating that the drug led to an improvement in cognition for Alzheimer’s patients with no adverse side effects. According to Cassava, after nine months, 66% of the 50 patients in the clinical trial observed an average improvement of 3 points on the Alzheimer’s Disease Assessment Scale- Cognitive Subscale (“ADAS-Cog”). Typically, Alzheimer’s patients see a decline of 5 ADASCog points in a year, meaning that a decline of 4 points would be typical over nine months. Then, after the close of trading on August 24, 2021, it was disclosed that the U.S. Food and Drug Administration (“FDA”) had received a so-called Citizen Petition commencing an administrative action to “halt two ongoing trials of the drug Simufilam . . . pending a thorough audit by the FDA.” As detailed in the Citizen Petition, “[i]nformation available to the petitioner . . . raises grave concerns about the quality and integrity of the laboratory-based studies surrounding this drug candidate and supporting the claims for its efficacy.” After summarizing its findings, the Citizen Petition went on to conclude that “the extensive evidence set forth in the enclosed report, which presents grave concerns about the quality and integrity of the scientific data supporting Cassava’s claims for Simufilam’s efficacy, provides compelling grounds for pausing the ongoing clinical trials until the FDA can conduct and complete a rigorous audit of Cassava’s research.”
The market price of Cassava common stock plummeted on this news, declining approximately $37 per share, or 32%, on unusually high trading volume of approximately 29 million shares trading, or more than 7x the average daily trading over the preceding ten trading days.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Cassava’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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