Cassava Sciences Settles SEC Charges Over Misleading Alzheimer's Drug Trial Data for $40M

The biotech firm and two former executives faced allegations of manipulating clinical trial results and misleading investors.

Cassava Sciences and two former executives agreed to a $40 million settlement with the SEC over allegations of misleading statements about their Alzheimer's drug simufilam.
The SEC accused Cassava of manipulating Phase 2 trial data to falsely show dramatic success in treating Alzheimer's disease.
Former CEO Remi Barbier and former senior vice president Lindsay Burns were implicated in selectively disclosing data to favor the drug’s efficacy.
Cassava did not admit or deny the charges but has implemented remedial measures and aims to focus on ongoing Phase 3 trials.
Despite the settlement and stock drop, Cassava's shares remain up 25% for the year.