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Novavax, Inc. Class Action Lawsuit - NVAX

Company Name
Novavax, Inc.
Stock Symbol
NVAX
Class Period
March 2, 2021 to October 19, 2021
Motion Deadline
January 11, 2022
Court
District of Maryland
43 days left to seek lead plaintiff status

Case Summary

The Novavax class action lawsuit seeks to represent purchasers of Novavax, Inc. (NASDAQ: NVAX) securities between March 2, 2021 and October 19, 2021, inclusive (the “Class Period”) and charges Novavax and certain of its top executives with violations of the Securities Exchange Act of 1934.  The Novavax class action lawsuit was commenced on November 12, 2021 in the District of Maryland and is captioned Sinnathurai v. Novavax, Inc., No. 21-cv-02910.

If you wish to serve as lead plaintiff of the Novavax class action lawsuit, please provide your information by clicking here.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Novavax class action lawsuit must be filed with the court no later than January 11, 2022.

CASE ALLEGATIONS: Novavax is a biotechnology company with product candidates including, among others, NVX-CoV2373, which is in development as a vaccine for COVID-19.  Prior to the start of the Class Period, Novavax announced that it planned to complete Emergency Use Authorization (“EUA”) submissions for NVX-CoV2373 with the U.S. Food and Drug Administration in the second quarter of 2021.

The Novavax class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Novavax overstated its manufacturing capabilities and downplayed manufacturing issues that would impact its approval timeline for NVX-CoV2373; (ii) as a result, Novavax was unlikely to meet its anticipated EUA regulatory timelines for NVX-CoV2373; (iii) accordingly, Novavax overstated the regulatory and commercial prospects for NVX-CoV2373; and (iv) consequently, Novavax’s public statements were materially false and misleading at all relevant times.

On May 10, 2021, The Washington Post reported that Novavax’s EUA “filing was delayed by manufacturing regulatory issues, until June at the earliest, according to four people who had recently been briefed on the company’s plans.”  Later that day during an investor call, Novavax confirmed that it was unlikely to seek an EUA for NVX-CoV2373 in the United States until July 2021 at the earliest—i.e., the third quarter of 2021.  On this news, Novavax’s stock price fell by nearly 9%.  Moreover, following Novavax’s investor call, Novavax’s stock price continued to fall an additional 13.9%.

Then, on August 5, 2021, Novavax reported that it expected to file for NVX-CoV2373’s EUA in the fourth quarter of 2021, rather than the third quarter of 2021.  On this news, Novavax’s stock price fell by more than 19%.

Finally, on October 19, 2021, Politico published an article entitled “‘They rushed the process’: Vaccine maker’s woes hamper global inoculation campaign.”  The Politico article reported, in relevant part, that Novavax “faces significant hurdles in proving it can manufacture a shot that meets regulators’ quality standards” with respect to NVX-CoV2373.  The Politico article cited anonymous sources as stating that Novavax’s “issues are more concerning than previously understood” and that Novavax could take until the end of 2022 to resolve its manufacturing issues and win regulatory authorizations and approvals.  On this news, Novavax’s stock price fell another 14.7%, further damaging investor.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Novavax securities during the Class Period to seek appointment as lead plaintiff in the Novavax class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Novavax class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Novavax class action lawsuit.  An investor’s ability to share in any potential future recovery of the Novavax class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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