The probes into the company by both the DOJ and the SEC have now been closed.
- The company cooperated wholly with the DOJ’s probe, Cassava said.
- Cassava Sciences is now developing Simufilam to treat tuberous sclerosis complex (TSC)-related epilepsy after dropping its development for Alzheimer’s in early 2025.
- Cassava previously reached a settlement with the SEC regarding the allegations and paid a monetary penalty without admitting or denying the SEC’s allegations.
Cassava Sciences, Inc. (SAVA) said on Thursday that the U.S. Department of Justice has closed its probe into the company over allegations of research misconduct pertaining to its drug Simufilam.
The company cooperated wholly with the DOJ’s probe, Cassava said.
“We welcome the resolution of these investigations and remain dedicated to maintaining the trust of all our stakeholders. As we move forward, we will continue to focus our efforts on developing a novel treatment for TSC-related epilepsy,” CEO Richard J. Barry said.
Shares of the company traded 2% lower at the time of writing.
Settlement With SEC
Previously in Sept. 2024, Cassava reached a settlement with the U.S. Securities and Exchange Commission (SEC) regarding the allegations and paid a monetary penalty without admitting or denying the claims.
The SEC charged Cassava and two former executives — founder and former CEO Remi Barbier, and former Senior VP of Neuroscience Lindsay Burns — with making misleading statements in 2020 regarding the results of a clinical trial for their experimental Alzheimer's treatment, Simufilam.
The regulator alleged that the company claimed the drug "significantly improved patient cognition," while failing to disclose that full patient data showed "no measurable cognitive improvement" in episodic memory.
Hoau-Yan Wang, a professor at the City University of New York Medical School, who worked with Cassava to develop the drug, was also charged with manipulating trial data.
Simufilam Now
Cassava Sciences is now developing Simufilam to treat tuberous sclerosis complex (TSC)-related epilepsy after dropping its development for Alzheimer’s in early 2025.
The decision to discontinue the Alzheimer’s program followed the drug’s failure to show clinical benefit in a late-stage trial.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around SAVA stock rose from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume improved from ‘low’ to ‘normal’ levels.
A Stocktwits user expressed doubts regarding the allegations raised against the company and said they will not invest in it again.
SAVA stock has dropped 25% over the past 12 months.
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