Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Cassava Sciences, The Honest Company, Vipshop, and Lightning eMotors and Encourages Investors to Contact the Firm
NEW YORK, Oct. 19, 2021 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Cassava Sciences, Inc. (NASDAQ: SAVA), The Honest Company (NASDAQ: HNST), Vipshop Holdings Ltd. (NYSE: VIPS), and Lightning eMotors, Inc. (NYSE: ZEV). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Cassava Sciences, Inc. (NASDAQ: SAVA)
Class Period: September 14, 2020 to August 27, 2021
Lead Plaintiff Deadline: October 26, 2021
On August 24, 2021, after the market closed, reports emerged about a citizen petition submitted to the U.S. Food and Drug Administration (“FDA”) concerning the accuracy and integrity of clinical data for simufilam. The petition requested that the FDA halt Cassava’s clinical trials pending a thorough audit of the publications and data relied upon by the Company.
Among other things, the petition stated that the “detailed analysis of the western blots [relied on by Cassava to support the connection between simufilam and Alzheimer’s] shows a series of anomalies that are suggestive of systematic data manipulation and misrepresentation.” It also stated that the methodology for studies “about Simufilam’s effects in experiments conducted on postmortem human brain tissue . . . defies logic, and the data presented again have hallmarks of manipulation.” The petition further stated that, after initial analyses of Phase 2b trials found that Simufilam was ineffective in improving the primary biomarkers endpoint, “Cassava had these samples analyzed again and this time reported that Simufilam rapidly and robustly improved a wide array of biomarkers” and the reanalysis “shows signs of data anomalies or manipulation.”
On August 25, 2021, before the market opened, Cassava issued a response to the petition, claiming that the allegations regarding scientific integrity are false and misleading. Among other things, the Company claimed that the clinical data, which the citizen petition stated had been reanalyzed to show simufilam was effective, had been generated by Quanterix Corp. (“Quanterix”), an independent company, suggesting that the reanalysis was valid.
On August 27, 2021, before the market opened, Quanterix issued a statement denying the Company’s claims, stating that it “did not interpret the test results or prepare the data” touted by Cassava.
The same day, Cassava responded to Quanterix’s statement, stating that “Quanterix’[s] sole responsibility with regard to this clinical study was to perform sample testing,specifically, to measure levels of p-tau in plasma samples collected from study subjects.”
On this news, the Company’s share price fell $12.51, or 17.6%, to close at $58.34 per share on August 27, 2021, on unusually heavy trading volume.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that data underlying the foundational research for Cassava’s product candidates had been manipulated; (2) that experiments using post-mortem human brain tissue frozen for nearly 10 years was contrary to a basic understanding of neurobiology; (3) that biomarker analysis for patients treated with simufilam had been manipulated to conclude that simufilam was effective; (4) that Quanterix, an independent company, had not interpreted the test results or prepared the data charts for the biomarker analysis for patients treated with simufilam; (5) that, as a result of the foregoing, there was a reasonable likelihood that Cassava would face regulatory scrutiny in connection with the development of simufilam; and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For more information on the Cassava Sciences class action go to: https://bespc.com/cases/SAVA
The Honest Company, Inc. (NASDAQ: HNST)
Class Period: May 2021 IPO
Lead Plaintiff Deadline: November 15, 2021
On May 6, 2021, Honest Company completed its IPO, selling approximately 26 million shares of common stock for $16.00 per share.
Approximately two months after the IPO, on August 13, 2021, before the market opened, Honest Company announced its second quarter 2021 financial results, reporting a net loss of $20 million, compared to a net loss of only $0.4 million for the second quarter of 2020. Honest disclosed that its revenue grew only 3% as compared to the second quarter of 2020, because it was negatively impacted by “an estimated $3.7 million COVID-19 stock-up impact primarily in Diapers and Wipes in the prior year period.” Honest Company also disclosed that its Diapers and Wipes category revenue declined 2% compared to the second quarter of 2020. Honest further disclosed that “Household and Wellness revenue declined 6% from the second quarter of 2020 as consumer and customer demand for sanitization products decreased as consumers became vaccinated and customers managed heavy levels of inventory.”
On this news, the Company’s stock price fell $3.98 per share, or 28%, to close at $10.07 per share on August 13, 2021, on unusually heavy trading volume.
On August 19, 2021, the Company’s stock price closed at an all-time low of $9.16 per share, a nearly 43% decline from the $16.00 per share IPO price.
According to the complaint, the Registration Statement was materially false and misleading and omitted: (1) that, prior to the IPO, the Company’s results had been significantly impacted by a multimillion-dollar COVID-19 stock-up for products in the Diapers and Wipes category and Household and Wellness category; (2) that, at the time of the IPO, the Company was experiencing decelerating demand for such products; (3) that, as a result, the Company’s financial results would likely be adversely impacted; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
For more information on the Honest Company class action go to: https://bespc.com/cases/HNST
Vipshop Holdings Ltd. (NYSE: VIPS)
Class Period: March 22, 2021 to March 29, 2021
Lead Plaintiff Deadline: December 13, 2021
The complaint alleges that throughout the Class Period, Defendants traded while in possession of material non-public information and that: (1) Defendants obtained the material non-public information pursuant to their agreements with Archegos Capital Management's (“Archegos”) and as a result of their serving as prime brokers of Archegos. (2) Defendants knew, recklessly disregarded, or should have known that they owed a fiduciary duty, or obligation arising from a similar relationship of trust and confidence, to Archegos to keep the information confidential. (3) Nevertheless, while in possession of material, non-public adverse information, Defendants collectively sold billions of dollars' worth of Company shares. Later, when the information became publicly known, the price of the Company's common stock declined sharply as a result of such disclosure.
For more information on the Vipshop class action go to: https://bespc.com/cases/VIPS
Lightning eMotors, Inc. (NYSE: ZEV)
Class Period: May 7, 2021 to August 16, 2021
Lead Plaintiff Deadline: December 14, 2021
Lightning eMotors’ stock began trading on the New York Stock Exchange on May 7, 2021 following a de-SPAC transaction with GigCapital3. Then, on August 16, 2021, Lightning eMotors announced the Company's financial results for the second quarter of 2021, including a net loss per share of $0.79 compared to a loss of $0.10 in the second quarter of 2020. The Company also pulled its full year financial guidance for the remainder of 2021, just days after announcing a multi-year agreement with Forest River, a Berkshire Hathaway company.
On this news, Lightning eMotors’ stock price fell $1.63 per share, or 16.93%, to close at $8.00 per share on August 17, 2021.
For more information on the Lightning eMotors class action go to: https://bespc.com/cases/ZEV
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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