Cassava Sciences, Inc.
According to the Complaint, Cassava Sciences, Inc. is a clinical stage biotechnology company engaged in the development of drugs for neurodegenerative diseases. Its lead therapeutic product candidate during the Class Period was simufilam, a small molecule drug designed to treat Alzheimer’s disease, and its lead investigational diagnostic product candidate was SavaDx, a blood-based biomarker/diagnostic to detect Alzheimer’s disease. The Company’s financial viability is largely dependent upon the clinical success of simufilam as the Company currently has no sources of revenues.
On August 24, 2021, after market hours, Cassava Sciences stock dropped over 20% in response to a report raising concerns over the quality of the studies into the Company’s experimental Alzheimer’s drug simufilam. A letter posted on a government website urged the U.S. Food and Drug Administration’s (FDA) center for drug evaluation and research to pause simufilam clinical trials. On this news, Cassava’s stock price plunged over 20%, in after hours trading on August 24, 2021.
The Complaint alleges that, throughout the Class Period, Defendants made false and misleading statements and failed to disclose that: (i) the quality and integrity of the scientific data supporting Cassava Sciences’ claims for simulfilam’s efficacy had been overstated; (ii) the scientific data supporting Cassava Sciences’ claims for simulfilam’s efficacy were biased; and (iii) as a result, defendants’ positive statements during the Class Period about Cassava Sciences’ business metrics and financial prospects and the likelihood of U.S. Food Drug Administration (“FDA”) approval were false and misleading and/or lacked a reasonable basis.
If you suffered a loss on your investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.
An attorney will contact you at no cost to provide you information about joining the action and answer your questions. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.