#Class Action #Cassava Sciences #Simufilam

Cassava Sciences Under Legal Scrutiny

In December 2024, Pomerantz LLP announced the initiation of a class action lawsuit against Cassava Sciences, Inc. (NASDAQ: SAVA) centered on potential securities fraud and questionable business operations. The firm is urging shareholders who incurred losses during their investment in Cassava to consider joining this class action. Interested parties are encouraged to reach out to attorney Danielle Peyton for further details regarding participation.

The impetus for this legal action stems from a dismal press release issued by Cassava on November 25, 2024, where it revealed that its investigational Alzheimer's drug, simufilam, failed to achieve critical efficacy endpoints in a pivotal Phase 3 clinical trial. This particular study assessed the drug’s effectiveness against a placebo over a 52-week period in patients with mild-to-moderate Alzheimer’s disease. Following these unanticipated results, the company also stated it would be terminating a second Phase 3 trial evaluating different dosages of the same drug.

In the wake of this announcement, shares of Cassava Sciences plummeted by $22.19, marking an astonishing decline of approximately 83.78%. This drastic drop left the stock price closing at a mere $4.30 per share, highlighting the extent of investors’ losses and the perceived failure in the firm's obligations to its shareholders.

The lawsuit raises compelling questions regarding the company's adherence to securities law, particularly focusing on whether the officers and directors of Cassava misled investors about the potential of simufilam. It has become increasingly evident that shareholders who purchased stocks within the defined