Kessler Topaz Meltzer & Check, LLP

Securities Fraud Class Action Lawsuit Filed Against Cassava Sciences, Inc. - Seite 2

Then, on August 25, 2021, before the market opened, Cassava issued a response to the Citizen Petition, claiming that the allegations regarding scientific integrity are false and misleading. Among other things, Cassava claimed that the clinical data, which the Citizen Petition stated had been reanalyzed to show simufilam was effective, had been generated by Quanterix Corp. (“Quanterix”), an independent company, suggesting that the reanalysis was valid. Following this news, Cassava’s share price fell $36.97, or 32%, to close at $80.86 per share on August 25, 2021.

Finally, on August 27, 2021, before the market opened, Quanterix issued a statement denying Cassava’s claims, stating that it “did not interpret the test results or prepare the data” touted by Cassava. That same day, Cassava responded to Quanterix’s statement, stating that “Quanterix’[s] sole responsibility with regard to this clinical study was to perform sample testing, specifically, to measure levels of p-tau in plasma samples collected from study subjects.” Following this news, Cassava’s share price fell $12.51, or 17.6%, to close at $58.34 per share on August 27, 2021.

The complaint alleges that throughout the Class Period, the defendants failed to disclose to investors that: (1) data underlying the foundational research for Cassava’s product candidates had been manipulated; (2) experiments using post-mortem human brain tissue frozen for nearly 10 years was contrary to a basic understanding of neurobiology; (3) biomarker analysis for patients treated with simufilam had been manipulated to conclude that simufilam was effective; (4) Quanterix, an independent company, had not interpreted the test results or prepared the data charts for the biomarker analysis for patients treated with simufilam; (5) as a result of the foregoing, there was a reasonable likelihood that Cassava would face regulatory scrutiny in connection with the development of simufilam; and (6) as a result of the foregoing, the defendants’ positive statements about Cassava’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Cassava investors may, no later than October 26, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member.  A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation.  In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.