Cassava Sciences (SAVA) announced on Tuesday that it agreed to pay $31.25M to settle a class action lawsuit pending in a Texas District Court over the company’s alleged violations of the federal securities laws.
The case filed in the U.S. District Court for the Western District of Texas, Austin Division, in 2021 relied on allegations contained in Citizen Petitions submitted to the FDA regarding Cassava’s (SAVA) lead asset, simufilam.
In November 2024, the company suffered a late-stage trial setback for the once high-flying oral therapy targeted at Alzheimer’s disease.
“The settlement is not an admission of fault or wrongdoing by the Company,” Cassava (SAVA) said, adding that it has recorded a $31.25M provision in Q2 2025 to recognize a potential loss contingency related to the case.
