Cassava Sciences Shares Lower Premarket on $40 Million Penalty to Settle Doctored Data Claims

By Adriano Marchese

Cassava Sciences shares fell in premarket trading Friday after regulators said the company, along with two former executives, will pay more than $40 million to settle charges related to misleading statements made about the clinical trial of its Alzheimer's disease treatment.

Shares traded 8.4% lower at $29.18.

Three parties were charged with violating antifraud provisions for its drug Simufilam: founder and former chief executive officer Remi Barbier, former senior vice president of neuroscience Dr. Lindsay Burns, and the company itself.

Cassava was also charged with violating reporting provisions of the federal securities laws, the Securities and Exchange Commission said late Thursday.

Without admitting or denying the allegations Cassava, Barbier, and Burns consented to civil injunctions against future violations. Cassava, Barbier, and Burns also agreed to pay civil penalties of $40 million, $175,000, and $85,000, respectively, the SEC said.

The SEC also said Dr. Hoau-Yan Wang, a Cassava consultant, was charged with manipulating the reported clinical trial results. Without admitting or denying the violations, Wang agreed to cease and desist from future violations and to pay a monetary penalty, the SEC said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

September 27, 2024 06:48 ET (10:48 GMT)

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