Robbins LLP is Investigating Allegations that Cassava Sciences, Inc. (SAVA) Misled Investors Regarding its Lead Drug Candidate

Robbins LLP announces that a class action was filed on behalf of all investors who purchased or otherwise acquired Cassava Sciences, Inc. (NASDAQ: SAVA) securities between February 7, 2024 and November 24, 2024. Cassava is a clinical stage biotechnology company, with a focus on developing drugs for neurodegenerative diseases.

The Allegations

According to the complaint, during the class period, defendants created the false impression that they possessed reliable information pertaining to the Company’s drug prospects and anticipated growth while minimizing risk from a potential drug failure.  Yet, in truth, Cassava’s repeated statements of confidence in their drug and reliance upon spinning the statistically insignificant data from the Phase 2 study fell short of the reality of simufilam’s potential; the Company simply did not have a drug that was capable of abating the progression of Alzheimer’s Disease, even when attempting to treat only the mild and moderate cases.  

Plaintiff alleges that on November 25, 2024, Cassava released topline results for the first of its two ongoing Phase 3 studies on simufilam, the “ReThink-ALZ” study.  The results indicated that simufilam failed to meet each of the pre-specified primary, secondary, and exploratory endpoints; in sum, simufilam failed to outperform the placebo.  On this news, the price of Cassava’s common stock declined dramatically. From a closing market price of $26.48 per share on November 22, 2024, Cassava’s stock price fell to $4.30 per share on November 25, 2024, a decline of about 83.76% in the span of just one day.

What Now: You may be eligible to participate in the class action against Cassava Sciences, Inc. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by February 10, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.