Pomerantz law firm reminds shareholders
NEW YORK, Oct. 03, 2021 (GLOBE NEWSWIRE) – Pomerantz LLP announces that a class action lawsuit has been filed against Cassava Sciences, Inc. (“Cassava” or the “Company”) (NASDAQ: SAVA) and certain of its officers . The class action lawsuit, filed in the United States District Court for the Western District of Texas, and registered as 21-cv-00856, is in the name of a group consisting of all persons and entities other than the defendants who purchased or otherwise acquired cassava securities between September 14, 2020 and August 27, 2021 inclusive (the “Class Period”). The plaintiff is pursuing actions against the defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased cassava securities during the appeal period, you have until October 26, 2021 to ask the court to appoint you as the lead plaintiff for the appeal. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
[Click here for information about joining the class action]
Cassava is an Austin-based clinical-stage biotechnology company engaged in the development of drugs for neurodegenerative diseases. Its primary therapeutic product candidate is called simufilam (formerly PTI-125), developed as a treatment for Alzheimer’s disease (“AD”), and its primary investigational diagnostic product candidate was SavaDx, a blood biomarker / diagnostic tool for detecting MY. 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. The financial viability of the Company depends in large part on the clinical success of simufilam, as the Company currently has no source of revenue.
On February 2, 2021, Cassava announced the results of its interim analysis of an open label study with simufilam, which reportedly showed that patients’ cognitive and behavioral scores both improved after six months of treatment with simufilam, without any security issue. According to the company, “[i]In a clinical study funded by the National Institutes of Health and conducted by Cassava Sciences, six months of treatment with simufilam improved cognition scores by 1.6 points on ADAS-Cog11, an average improvement of 10% from start to finish. 6th month.[i]In these same patients, simufilam also improved dementia-related behaviors, such as anxiety, delusions and agitation, by 1.3 points on the neuropsychiatric inventory, an average improvement of 29% between beginning and the sixth month.
As the market digested this news, the market price of cassava common stocks has skyrocketed, nearly quadrupling from its close of $ 22.99 per share on February 1, 2021 to $ 90 per share in intraday trading by now. on February 3, 2021. The stock peaked with an extremely high trading volume of over 76 million shares traded on February 2, 2021 alone, more than 19 times the average daily volume over the previous ten trading days. Cassava immediately benefited from stock price inflation, issuing and selling more than four million common shares at $ 49 per share on February 12, 2021 through a follow-up public offering subscribed and raising over $ 200 million in gross proceeds (the “Offer”).
The complaint 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 Company. Specifically, the defendants failed to disclose to investors that: (1) the quality and integrity of the scientific data supporting Cassava’s claims regarding the efficacy of simufilam had been overestimated; (2) the data underlying the basic research for cassava product candidates had been manipulated; (3) experiments using postmortem human brain tissue frozen for nearly 10 years were contrary to a basic understanding of neurobiology; (4) the biomarker analysis for patients treated with simufilam had been manipulated to conclude that simufilam was effective; (5) Quanterix Corp. (“Quanterix”), an independent company, did not interpret test results or prepare data tables for biomarker analysis for patients treated with simufilam; (6) 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 (7) because of all of the foregoing, the Defendants’ positive statements during the Class Period regarding the Company’s business actions and financial prospects and the likelihood of Food and Drug Administration approval (“ FDA ‘) of the United States were false and misleading and / or lacked a reasonable basis.
On July 29, 2021, Cassava released a press release titled “Cassava Sciences Announces Positive Cognition Data with Simufilam in Alzheimer’s Disease”. Although the press release touts supposedly positive cognitive data, analysts and industry watchers noted that the data did not show that simufilam was more effective in improving cognition than Biogen Inc.’s drug Aduhelm. (“Biogen”).
Following this news, the Cassava share price fell $ 65.77, or 48.61%, over two trading days, to close at $ 69.53 per share on July 30, 2021.
On August 24, 2021, after the market closed, reports emerged regarding a citizen petition submitted to the FDA regarding the accuracy and integrity of clinical data for simufilam. 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 found 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, an independent company, suggesting that the reanalysis was valid.
Following this news, the company’s stock price fell $ 36.97, or 31.38%, 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 share price fell $ 12.51, or 17.66%, to close at $ 58.34 per share on August 27, 2021, on unusually high trading volume.
Pomerantz, with offices in New York, Chicago, Los Angeles and Paris, is recognized as one of the leading firms in the areas of corporate law, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the Dean of the Class Actions Bar, Pomerantz was a pioneer in the field of securities class actions. Today, more than 80 years later, Pomerantz continues the tradition it established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext 7980