Cassava Sciences agrees to $31.25 million settlement in securities class action
Cassava Sciences will pay $31.25 million to settle a securities class action lawsuit, while also facing a clinical hold on its simufilam drug trial.Summary
Cassava Sciences has agreed to a $31.25 million settlement to resolve a consolidated securities class action lawsuit, as announced in a press release and filed with the U.S. Securities and Exchange Commission. The settlement, covering transactions between September 14, 2020, and October 12, 2023, requires a payment into escrow in January 2026 in exchange for full releases from plaintiffs and class members. Cassava maintains that the settlement is not an admission of fault.
In addition to the settlement, Cassava Sciences is facing a full clinical hold from the U.S. Food and Drug Administration (FDA) on its proposed trial for simufilam, a drug intended for tuberous sclerosis complex-related epilepsy. The FDA has requested additional pre-clinical data and modifications to the trial protocol, delaying the trial's initiation, originally planned for the first half of 2026.
The company had previously recorded a $31.25 million loss contingency in the second quarter of 2025 related to the litigation. The settlement and the FDA’s clinical hold represent significant challenges for Cassava Sciences as it continues its clinical development efforts.
(Source：Investing Philippines)