Class Action Suit Filed Against Cassava Sciences Over Misleading Drug Candidate Information

San Diego, January 2, 2025 – Legal experts at Robbins LLP have filed a class action lawsuit against Cassava Sciences, Inc. (NASDAQ: SAVA) for alleged securities fraud from February 7, 2024, to November 24, 2024.

About Cassava Sciences

Cassava Sciences is a clinical stage biotechnology company focused on developing drugs to treat neurodegenerative diseases, primarily Alzheimer’s Disease. With a portfolio of promising drug candidates, Cassava aims to address significant challenges in the field of neurology.

Investor Alert: How to Get Involved

If you are an investor in Cassava Sciences, you can find more details and ways to participate in the class action suit by submitting a form, sending an email to attorney Aaron Dumas Jr., or calling (800) 350-6003.

Understanding the Allegations

Robbins LLP is investigating claims that Cassava Sciences misled investors regarding its lead drug candidate, simufilam. The lawsuit alleges that the company provided a false impression of reliable data and downplayed risks associated with the drug’s development, particularly during the Phase 2 study.

Investors were told that the data from the Phase 2 study was positive, but it was statistically insignificant. The company continued to make confident statements about simufilam’s potential to treat mild and moderate cases of Alzheimer’s, even as internal data suggested otherwise.

Phase 3 Study Results

On November 25, 2024, Cassava Sciences released the topline results of its Phase 3 study, ReThink-ALZ. Unfortunately, the data showed that simufilam did not meet any of the primary, secondary, or exploratory endpoints set out in the study. It failed to outperform the placebo, leading to a dramatic decline in Cassava’s stock price.

The stock fell from $26.48 per share to $4.30 per share in just one day, representing an 83.76% drop. This significant market movement exposed the misleading nature of the company’s previous statements and the true value of the drug candidate.

Opportunity for Individuals to Participate

If you are an affected shareholder, you may be eligible to join the class action suit. To serve as the lead plaintiff, you must submit your application to the court by February 10, 2025. As a lead plaintiff, you would represent other class members in directing the litigation.

Participation in the lawsuit is not required for potential recovery, and individuals can choose to remain as absent class members if they prefer. For more information, click here.

All legal representation is on a contingency fee basis. Shareholders do not incur any fees or expenses.

About Robbins LLP

Founded in 2002, Robbins LLP is a leader in shareholder rights litigation. The law firm is dedicated to helping shareholders recover losses and ensuring that corporate executives are held accountable for their actions.

The attorneys and staff at Robbins LLP have a track record of success in securing compensation for investors and improving corporate governance structures. They provide legal services on a contingency basis, meaning that there are no upfront costs to you.

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