Cassava Sciences Shares Falter on Response to SEC Probe Report
24 September 2022 - 01:49AM
Dow Jones News
By Colin Kellaher
Shares of Cassava Sciences Inc. fell more than 15% Friday,
erasing much of Thursday's big gains, after the biotechnology
company downplayed a published report that the Securities and
Exchange Commission is preparing to close an investigation into
claims of study manipulation.
The Austin, Texas, company said in an SEC filing that it hasn't
received any termination letter or the like from any government
agency regarding any requests for corporate information and
documents.
Cassava last November disclosed that undisclosed government
agencies had made confidential requests for information and
documents, and the company on Friday said those requests remain
confidential.
The Wall Street Journal, citing people familiar with the matter,
reported in November that the SEC was looking into claims that
Cassava had manipulated research results of its experimental drug
for Alzheimer's disease.
On Thursday, Seeking Alpha, citing a document it said was
obtained through a request under the Freedom of Information Act, or
FOIA, reported that the SEC was closing its case, sending Cassava
shares up nearly 36% during Thursday's trading session.
Cassava on Friday said it is "unable to establish the
legitimacy" of the communications purportedly sent from a
government agency following a FOIA request, and that it "expressly
disclaims any obligation to respond to any reports or rumors
related to the topic of FOIA."
Cassava shares were recently changing hands at $42.58, down
nearly 17%.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
September 23, 2022 11:34 ET (15:34 GMT)
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