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LOS ANGELES, September 23, 2021 (GLOBE NEWSWIRE) – Glancy Prongay & Murray LLP (“GPM”) reminds investors of the next October 26, 2021deadline to file a motion as the principal plaintiff in the class action filed on behalf of investors who have purchased or otherwise acquired Cassava Sciences, Inc. (“Cassava†or the “Companyâ€) ( SAVA) titles between September 14, 2020 and August 27, 2021, inclusive (the “Class Periodâ€).
If you have suffered a loss on your cassava investments or would like to inquire about the possibility of pursuing claims to recover your loss under federal securities laws, you can submit your details to https://www.glancylaw.com/cases/cassava-sciences-inc/. You can also contact Charles H. Linehan of GPM at 310-201-9150, toll free at 888-773-9224, or by email at [email protected] to find out more about your rights.
Cassava is a clinical-stage biotechnology company. Its main therapeutic product candidate is called simufilam (formerly PTI-125), developed as a treatment for Alzheimer’s disease (“ADâ€). Simufilam allegedly targets an altered form of a protein called filamin A (“FLNA”) in the Alzheimer’s disease brain and reverts it to its native, healthy conformation, thereby counteracting the downstream toxic effects of altered FLNA.
On August 24, 2021, after the market closed, reports were released regarding a citizen petition submitted to the United States Food and Drug Administration (“FDAâ€) regarding the accuracy and integrity of simufilam clinical data. The petition called on the FDA to stop clinical trials on cassava pending a thorough audit of the publications and data the company relies on. Among other things, the petition stated that “[d]detailed analysis of western blots [relied on by Cassava to support the connection between simufilam and Alzheimer’s] shows a series of anomalies that suggest systematic manipulation of the data and misrepresentation. He also said the methodology of the studies “on the effects of Simufilam in experiments conducted on human brain tissue post-mortem.” . . defies logic, and the re-presented data has manipulation characteristics. The petition further stated that after the initial analyzes of the phase 2b trials revealed that simufilam was ineffective in improving the primary endpoint of biomarkers, “cassava had these samples rerun and this time, he reported that simufilam rapidly and robustly improved a wide range of biomarkers “and the reanalysis” shows signs of abnormalities or data manipulation “.
On August 25, 2021, before the market opened, Cassava responded to the petition, claiming that the claims regarding scientific integrity were false and misleading. Among other things, the Company claimed that the clinical data, which the citizen petition said had been reanalyzed to show that simufilam was effective, was generated by Quanterix Corp. (“Quanterix”), an independent company, suggesting that the reanalysis was valid.
Following this news, the company’s stock price fell $ 36.97, or 32%, to close at $ 80.86 per share on August 25, 2021, on unusually high trading volume.
On August 27, 2021, before the market opened, Quanterix released a statement denying the company’s claims, stating that it “had not interpreted the test results or prepared the data” touted by Cassava.
On the same day, Cassava responded to Quanterix’s statement, stating that “Quanterix”[s] the sole responsibility with respect to this clinical study was to perform sample testing, in particular to measure p-tau levels in plasma samples taken from study subjects.
Following this news, the company’s stock price fell $ 12.51, or 17.6%, to close at $ 58.34 per share on August 27, 2021, on unusually high trading volume.
The complaint filed in this class action alleges that throughout the Class Period, the Defendants made materially false and / or misleading statements, and failed to disclose material adverse facts regarding the business, operations and prospects of the society. Specifically, the defendants failed to disclose to investors: (1) that the data underlying the basic research for the Cassava product candidates had been manipulated; (2) that experiments using postmortem human brain tissue frozen for nearly 10 years were contrary to a basic understanding of neurobiology; (3) that the biomarker analysis for patients treated with simufilam had been manipulated to conclude that simufilam was effective; (4) that Quanterix, an independent company, did not interpret test results or prepare data tables for biomarker analysis for patients treated with simufilam; (5) that due to the above, there was a reasonable likelihood that cassava would be subject to regulatory review as part of the development of simufilam; and (6) that as a result of the foregoing, the Defendants’ positive statements regarding the business, operations and prospects of the Company were substantially misleading and / or lacked reasonable basis.
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If you have purchased or otherwise acquired securities of Cassava during the Recourse Period, you may apply to the Court at the latest October 26, 2021 to seek appointment as the principal plaintiff in this putative class action lawsuit. To be a member of the class action, you do not need to take any action at this time; you can retain the services of the lawyer of your choice or take no action and remain an absent member of the class action. If you would like to know more about this class action, or if you have any questions regarding this announcement or your rights or interests in the current class action, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100 , Los Angeles, CA 90067 at 310-201-9150, toll free at 888-773-9224, by email at [email protected], or visit our website at www.glancylaw.com. If you are applying by email, please include your mailing address, phone number and number of shares purchased.
This press release may be considered an attorney’s advertisement in certain jurisdictions under applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
[email protected]
www.glancylaw.com
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