Vaxart, Inc. Class Action Lawsuit
- Company Name
- Vaxart, Inc.
- Stock Symbol
- Class Period
- June 25, 2020 to July 25, 2020
- Northern District of California
The Vaxart, Inc. class action lawsuit charges Vaxart, certain of its officers and a major shareholder of the Company with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Vaxart securities between June 25, 2020 to July 25, 2020, inclusive (the “Class Period”). The Vaxart class action lawsuit was commenced on August 24, 2020 in the Northern District of California and is captioned Himmelberg v. Vaxart, Inc., No. 20-cv-05949.
Vaxart is a clinical-stage company purportedly engaged in the discovery and development of vaccines for a variety of diseases that would be administered orally, rather than by injection. In early 2020, Vaxart began working on a vaccine for COVID-19. Throughout 2020, Vaxart periodically announced positive news regarding these efforts.
The Vaxart class action lawsuit alleges that defendants orchestrated a fraudulent scheme to profit from artificially inflating Vaxart’s stock price by announcing false and misleading information concerning Vaxart’s oral COVID-19 vaccine candidate, including Vaxart’s purported involvement in “Operation Warp Speed,” a program that commits the federal government to massive funding for the development of COVID-19 vaccines.
On July 25, 2020, The New York Times published an article, entitled “Corporate Insiders Pocket $1 Billion in Rush for Coronavirus Vaccine,” reporting on suspiciously timed stock bets that had generated significant profits for senior executives and board members at companies developing vaccines and treatments. Vaxart was featured prominently in the article, which clarified that “Vaxart is not among the companies selected to receive significant financial support from Warp Speed.” On this news, the price of Vaxart shares dropped sharply from $12.29 per share to $11.16 per share on July 27, 2020.
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