Cassava Sciences, Inc. (NASDAQ: SAVA) Investor Alert: Lawsuit seeks to recover losses


A lawsuit was filed in the U.S. District Court for the Northern District of Illinois by an investor who bought shares of Cassava Sciences, Inc. (NASDAQ: SAVA) alleging that the company violated federal securities laws in relation to some allegedly false and misleading statements made between August 18, 2022 and October 12, 2023.

You have specific options, and for some investors, there are tight deadlines, if you bought a sizable quantity of shares of Cassava Sciences, Inc. (NASDAQ: SAVA) between August 18, 2022 and October 12, 2023, and/or if you bought any NASDAQ: SAVA shares before August 2022 and you still own any of those shares. Cutoff date: April 2, 2024. NASDAQ: SAVA investors can reach out to the Shareholders Foundation by phone at +1(858) 779-1554 or by email at [email protected].

Cassava Sciences, Inc. is a clinical stage biotechnology business situated in Austin, TX that creates medications for neurological illnesses. PTI-125, also known as simufilam, is a small molecule medication that is Cassava Sciences’ top therapeutic drug candidate. It is being considered for the treatment of Alzheimer’s disease.

In order to determine the long-term safety and tolerability of simufilam 100 mg twice daily for 12 or more months in patients with Alzheimer’s disease and to evaluate exploratory efficacious endpoints, such as changes in cognition and biomarkers, Cassava Sciences, Inc. started a long-term, open-label study in March 2020.

The US Food and Drug Administration (FDA) was then asked in a Citizen Petition to stop any phase 3 trials of simufilam in August 2021 because of worries about data manipulation. The Citizen Petition specifically raised serious questions regarding the caliber and objectivity of the lab-based research pertaining to this medication candidate and corroborating the efficacy claims made for it.

In response, Cassava Sciences, Inc. disputed the claims made in the Citizen Petition and emphasized the success of the company’s research initiatives as well as the efficacy of simufilam. To be sure, Cassava did stand by its experts and scientific colleagues, as noted in a press release issued shortly after the FDA received the Citizen Petition. Subsequently, Cassava persisted in defending simufilam despite the fact that other sources had exposed simufilam’s shortcomings and scholarly publications including the Journal of Neuroscience and the Neurobiology of Aging had expressed concerns about the medication’s effectiveness.

The New York Times released a story titled “Scientists Question Data Behind an Experimental Alzheimer’s Drug” on April 18, 2022. The article discussed the experimental Alzheimer’s medication simufilam from Cassava Sciences and revealed that Dr. H.Y. Wang, one of the company’s advisers, had five of his papers withdrawn from the scientific journal PLoS One due to serious concerns about the reliability and integrity of the research.

The peer-reviewed academic magazine Science revealed on October 12, 2023, that university authorities had looked into potential data manipulation involving Professor Hoau-Yan Wang (Dr. Wang), a researcher at the City University of New York who is involved in the simufilam research program. The members of the investigative committee reached their conclusion based on long-standing and egregious misconduct in data management and record keeping by Dr. Wang, and they found evidence highly suggestive of deliberate scientific misconduct by Dr. Wang, even though they were unable to confirm that data manipulation had occurred because they did not have access to the raw data at issue.

On October 16, 2023, shares of Cassava Sciences, Inc. (NASDAQ: SAVA) dropped as low as $12.37 per share.

In the complaint, the plaintiff claims that the defendants broke federal securities laws while selling common shares of Cassava Sciences, Inc. (NASDAQ: SAVA) to buyers between August 18, 2022 and October 12, 2023. In particular, the plaintiff alleges that between August 18, 2022 and October 12, 2023, the Defendants made false and/or misleading statements and/or neglected to disclose that the Company neglected to maintain appropriate and effective data management controls and procedures related to its drug research programs, which allowed the data published to support simufilam to be manipulated to overstate the drug’s effectiveness. As a result, Cassava misrepresented the effectiveness of its research programs and the clinical and/or commercial prospects of simufilam, and that the Company’s public statements were materially false and misleading.

In order to exercise their options, holders of shares of Cassava Sciences, Inc. (NASDAQ: SAVA) need get in touch with the Shareholders Foundation.

Get in touch with Investors Foundation, Inc.Michael Daniels: +1-(858)-779-1554; 3111 Camino Del Rio North, Suite 42392108, San Diego(858)[email protected] is the fax number.

About The Shareholders Foundation, Inc.: We are a professional portfolio monitoring and settlement claim filing service that keeps investors informed about securities class actions, settlements, judgments, and other legal news pertaining to the stock and financial markets. We also conduct research on shareholder issues. With a vast network of contacts, Shareholders Foundation, Inc. provides support, guidance, and aid to each and every shareholder. It is not a law firm, The Shareholders Foundation, Inc. The Shareholders Foundation is not involved in the filed, reached, or settled cases, investigations, or settlements mentioned. The public is offered this information as a service. It should not be relied upon and is not meant to be legal advice.

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