SEC Fines Cassava Sciences, Inc., Lawsuit Follows

After investors learned that Cassava Sciences had lied about its clinical trials, they quickly sold off their shares in the pharmaceutical company, sending its stock price crashing 84%. Now, some of those furious investors are suing the company to recover their losses.

Cassava developed simufilam, a potential Alzheimer treatment. In February 2024, Cassava announced a "clearly desirable clinical outcome" for the drug's Phase Two clinical trials. The good news kept coming, as in July the Company announced simufilam had entered an open-label extension study, which is typically a good sign in pharmaceutical studies.

Things got murky for the Company in June 2024, when it announced that one of its science advisors had been indicted for defrauding the National Institutes of Health. Allegedly, that advisor lied to the NIH on simulfilam's grant applications. Then, in October, Cassava announced the SEC levied a $40 million fine because Cassava lied about simufilam's Phase 2b clinical trials. The Phase 2b trials failed to meet statistical significance, but the Company never told investors about that failure.

Investors learned the full truth about Simufilam in November, when the Company announced results of the Phase Three trials. The drug failed all of the Phase Three trials and the Company pulled all further studies. Investors rapidly sold off their shares after that news, sending Cassava's stock plummeting. Now, some of those investors are signing up for the lawsuit.

Join the Lawsuit.