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Shareholder Action Reminder: Cassava Sciences Under Investigation

Faruqi & Faruqi, LLP, a prominent national securities law firm, has announced its investigation into potential claims against Cassava Sciences, Inc. The firm is reaching out to investors who may have suffered losses exceeding $75,000 from their investment in Cassava and want to explore their legal rights. This investigation comes in light of dramatic shifts in Cassava’s stock price following the release of unsatisfactory research results related to their drug candidate, simufilam.

Background

The probe into Cassava Sciences is particularly timely given that on November 25, 2024, the company published topline results from its Phase 3 study, "ReThink-ALZ". This pivotal study aimed to assess the effectiveness of simufilam in treating Alzheimer’s Disease. Unfortunately for shareholders, the results revealed the drug failed to meet any of its designated primary, secondary, or exploratory endpoints. This failure directly contradicted earlier statements from Cassava that enthusiastically touted the drug's capability to impact Alzheimer’s positively.

In the days leading up to this news, Cassava's stock was priced at approximately $26.48 per share, yet it plummeted to just $4.30 per share in the wake of the announcement—a staggering decrease of about 83.76% overnight. The swift and severe decline raises concerns among investors who may feel misled by the optimistic forecasts initially presented by the company.

What Investors Should Do

Faruqi & Faruqi encourages investors who were impacted between February 7, 2024, and November 24, 2024, to reach out directly to partner Josh Wilson at 877-247-4292 for further information on their legal rights. The firm emphasizes the upcoming February 10, 2025, deadline for investors interested in taking on the role of lead plaintiff in the ongoing federal class action lawsuit against Cassava.

Being designated as a lead plaintiff can provide an opportunity to oversee the litigation process, which involves guiding the legal strategies and ensuring that the interests of the group are represented effectively. It's important to note that even those who choose not to assume this role can still recover from potential gains if a settlement occurs.

Concerns About Misleading Information

The legal complaint points out that the affirmative statements made by Cassava’s executives included unwarranted confidence in the performance of simufilam, all while downplaying critical information that could have altered investor decisions. This skewed narrative misled shareholders into investing at inflated prices, profoundly affecting the market's response and eroding investor trust.

Additionally, individuals possessing information regarding the company’s practices—including whistleblowers, former employees, or disgruntled shareholders—are encouraged to reach out to Faruqi & Faruqi with their insights.

How to Proceed

To engage in this unfolding legal matter or to find more about the processes involved, interested parties should visit www.faruqilaw.com/SAVA or reach out to Josh Wilson at the provided phone numbers. As with any litigation, previous results cannot guarantee future outcomes, but pursuing this route can potentially recover some losses for affected investors.

Faruqi & Faruqi has established itself as a key player in securities litigation since its inception in 1995, recovering considerable sums for its clients. Its commitment to pursuing justice for investors is unwavering, and this latest investigation is consistent with that mission. Ensuring that shareholders are informed and prepared to act is crucial as the case progresses in the coming months.