Case Summary

Cassava Sciences

NASDAQ: SAVA

Case Details

  • Baker v. Cassava Sciences, Inc. et al.
  • Class Period:August 18, 2022 - October 12, 2023
  • Date Filed:February 02, 2024
  • Jurisdiction:U.S. District Court, Northern District of Illinois
  • Docket Number: 1:24-cv-00977
  • Lead Plaintiff Deadline: April 5, 2024
Days Left to
Seek Plaintiff
44

Overview

A class action lawsuit has been filed against Cassava Sciences, Inc. (“Cassava” or the “Company”) (NASDAQ: SAVA) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Cassava lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Cassava common stock between August 18, 2022 and October 12, 2023, both dates inclusive, (the “Class Period”) and investors have until April 2, 2024 to seek appointment as lead plaintiff of the Cassava class action lawsuit.

Cassava is a clinical-stage biotechnology company. The Company’s lead therapeutic drug candidate is PTI-125 (or “simufilam”), a small molecule drug for the proposed treatment of Alzheimer’s disease.

In March 2020, Cassava initiated a long-term, open-label study to evaluate the long-term safety and tolerability of taking 100 mg of simufilam twice daily for 12 or more months in patients with Alzheimer’s disease and to assess exploratory efficacy endpoints, such as changes in cognition, and biomarkers.  Then, in August 2021, a Citizen Petition requested the U.S. Food & Drug Administration (“FDA”) to halt any phase 3 trials of simufilam due to concerns regarding data manipulation.  Specifically, the Citizen Petition referenced grave concerns about the quality and integrity of the laboratory-based studies surrounding this drug candidate and supporting the claims for its efficacy.  However, in response, Cassava denied the allegations in the Citizen Petition and instead touted the effectiveness of simufilam and the efficacy of the Company’s research programs.

Indeed, in a press release published shortly after the FDA received the Citizen Petition, Cassava stated that the Company stands behind its science, scientists, and scientific collaborators.  Thereafter, Cassava continued to maintain its defense of simufilam even as criticisms of simufilam were revealed from additional sources, and academic journals such as Neurobiology of Aging and Journal of Neuroscience issued “expressions of concern” regarding the efficacy of the drug.  On October 12, 2023, the peer-reviewed academic journal Science reported that Professor Hoau-Yan Wang (“Dr. Wang”), a City University of New York researcher associated with the research program for simufilam, had been investigated by university officials for possible data manipulation.  Although the investigative committee did not have access to the raw data at issue and thus was unable to confirm that data manipulation had occurred, members made their conclusion based on “long-standing and egregious misconduct in data management and record keeping by Dr. Wang” and “found evidence highly suggestive of deliberate scientific misconduct” by Dr. Wang.  On this news, Cassava’s stock price fell $2.68 per share, or 15.28%, to close at $14.86 per share on October 13, 2023.

As alleged in the lawsuit, because of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.  The lawsuit also alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company failed to maintain adequate and effective data management controls and procedures related to its drug research programs; (2) as a result, the data published in support of simufilam were susceptible to manipulation to overstate the drug’s effectiveness; (3) accordingly, Cassava had misrepresented the efficacy of its research programs and the clinical and/or commercial prospects of simufilam; (4) all of the foregoing, once revealed, were likely to subject the Company to significant financial and/or reputational harm; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.

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If you purchased or otherwise acquired Cassava (NASDAQ: SAVA) common stock between August 18, 2022, and October 12, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Cassava lawsuit is April 2, 2024.

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