Cassava Sciences agrees to pay $31.25 million to settle class action suit

Cassava Sciences Inc. (NASDAQ: SAVA) announced it reached an agreement to settle consolidated securities class action litigation for $31.25 million. The lawsuit was filed in 2021 in the United States District Court for the Western District of Texas Austin Division.

The settlement covers all purchasers or acquirers of company common stock or call options, or sellers of put options, between September 14, 2020 and October 12, 2023, subject to certain exclusions. The agreement resolves all claims and causes of action that have been or could be asserted by the plaintiffs and plaintiff class.

The biotechnology company, which focuses on developing treatments for central nervous system disorders, fully reserved the $31.25 million loss contingency in the second quarter of 2025. The settlement does not constitute an admission of fault or wrongdoing by the company.

"We are pleased to announce that we have reached an agreement to resolve our most significant, legacy litigation," said Rick Barry, president and chief executive officer. "With this agreement, we can dedicate our attention and resources to the continued development of simufilam as a potential treatment for TSC-related epilepsy."

The court will determine whether later-filed securities class action litigation should be consolidated into the existing case. Cassava Sciences is developing simufilam, an investigational oral small molecule, for tuberous sclerosis complex-related epilepsy and is planning a Phase 2 proof-of-concept study.

You May Also Be Interested In

• Wendy's names former McDonald's executive as new marketing chief
• Diana Shipping extends m/v Leto charter with Cargill at $18,000/day
• MicroVision receives multiple IRIS lidar orders in North America, Europe