A class action lawsuit has been filed against Cassava Sciences (NASDAQ:SAVA), alleging that the company made misleading statements regarding the efficacy of its leading drug candidate, simufilam, for the treatment of Alzheimer's Disease. The lawsuit, initiated by Levi & Korsinsky LLP, seeks to recover losses for shareholders who were adversely affected by alleged securities fraud between February 7, 2024, and November 24, 2024.
The lawsuit was triggered by the release of topline results from Cassava's Phase 3 "ReThink-ALZ" study of simufilam. The results, announced on November 25, 2024, revealed that simufilam failed to meet any of its pre-specified primary, secondary, and exploratory endpoints, indicating that it did not outperform the placebo.
Impact on Cassava Sciences' Stock
The news of the failed Phase 3 trial had an immediate and significant impact on Cassava Sciences' stock price. On November 25, 2024, the stock price plummeted to $4.30 per share, a dramatic decline of approximately 83.76% from its closing market price of $26.48 per share on November 22, 2024. This sharp decline resulted in substantial losses for investors, prompting the class action lawsuit.
Allegations of Misleading Information
The core of the lawsuit alleges that Cassava Sciences provided investors with materially misleading information regarding simufilam's potential as an Alzheimer's treatment. The complaint asserts that the company expressed undue confidence in simufilam's ability to effectively treat Alzheimer's Disease, which proved to be unfounded based on the Phase 3 trial results.
Call to Action for Affected Investors
Levi & Korsinsky LLP is encouraging investors who suffered losses in Cassava Sciences stock during the specified period to join the class action lawsuit. The firm is offering a no-cost, no-obligation opportunity for investors to learn about their rights and potential recovery options. Investors can contact Levi & Korsinsky directly or visit their website for more information.
