Cassava Disputes Charges Regarding the Government Investigation; Slams Short Sellers

Cassava Disputes Charges Regarding the Government Investigation; Slams Short Sellers

Clinical-stage biotech Cassava Sciences (NASDAQ:SAVA) responded to charges of research wrongdoing on Wednesday after it was reported that the U.S. Department of Justice had opened a criminal investigation into the company’s experimental Alzheimer’s treatment. According to Chief Executive Remi Barbier, No government agency had notified Sciences (NASDAQ:SAVA) that it has identified supporting evidence of research misconduct or any other wrongdoing, and for good reason — there is no supporting evidence for charges of research misconduct.

The Texas-based business cited a 2021 disclosure involving a widely rumored government subpoena. Cassava (NASDAQ:SAVA) stated that the claims of research malpractice “by financially motivated short-sellers business shares prompted the authorities to request information in 2021. While no firm executive or director has engaged in insider trading in over a decade, certain short sellers launching an unprecedented attack on Cassava Sciences” reportedly profited over $100,000,000 shorting stock (NASDAQ:SAVA). For a $100 million payoff, some investors may be encouraged to make false charges, Barbier said, adding. Our purpose is to help people with Alzheimer’s disease, not to earn a quick buck.

The shares of clinical-stage biotech Cassava Sciences (NASDAQ:SAVA) fell 44 percent in pre-market trading on Wednesday, after Reuters reported that the U.S. Justice Department had opened a criminal investigation related to the company’s experimental Alzheimer’s therapy.  The probe focuses on whether the Texas-based corporation falsified study results for the treatment, according to two sources quoted by the news agency.   The Justice Department employees conducting the investigation have expertise in determining whether firms or people deceived or cheated multiple parties, such as investors or government bodies.

To be crystal clear, Cassava Sciences adamantly rejects any claims of wrongdoing, Moss stated, adding that the company “has never been charged with a crime, and for good reason – Cassava Sciences has never participated in criminal conduct.”

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