Cassava Sciences Inc. Settles Securities Class Action for $31.25 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2025
0mins
Source: Benzinga
- Settlement Agreement: Cassava Sciences Inc. has reached a definitive agreement to settle a consolidated securities class action from 2021 by agreeing to pay $31.25 million to resolve all claims related to investors who purchased its common stock or options between September 14, 2020, and October 12, 2023, although the settlement does not include any admission of wrongdoing.
- Financial Implications: The company has fully reserved the $31.25 million settlement amount as a loss contingency in Q2 2025, which will directly impact its future financial condition and potentially affect investor confidence.
- Management Confidence: CEO Rick Barry stated that with this settlement, the company can focus its attention and resources on the continued development of simufilam as a potential treatment for TSC-related epilepsy, indicating a positive outlook during the transition.
- Stock Price Movement: Following the settlement announcement, Cassava's shares fell 1.26% to $2.35 in premarket trading, reflecting market caution regarding the settlement and the company's future developments.
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About SAVA
Cassava Sciences, Inc. is a clinical-stage biopharmaceutical company focused on developing novel, investigational treatments for central nervous system disorders, including Alzheimer’s disease and tuberous sclerosis complex (TSC)-related seizures. The Company's science is based on stabilizing, but not removing, a critical protein in the brain for patients with disorders such as Alzheimer’s disease or TSC. It has two biopharmaceutical assets under development: Simufilam and SavaDx. Simufilam, its lead therapeutic product candidate, is an oral treatment for Alzheimer’s disease and TSC-related epilepsy. Simufilam targets an altered form of a protein called filamin A (FLNA) in the brain of patients with disorders such as Alzheimer’s disease or TSC. SavaDx, its lead investigational diagnostic product candidate, early-stage program focused on detecting the presence of Alzheimer’s disease from a small sample of blood.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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