SAN FRANCISCO, CA / ACCESSWIRE / October 23, 2020 /Hagens Berman alerts Vaxart, Inc. (NASDAQ:VXRT) investors of today’s deadline to move for lead plaintiff in a securities fraud class action pending against the Company and urges VXRT investors who have suffered losses to contact the firm immediately.
Class Period: June 25, 2020 – July 25, 2020
Lead Plaintiff Deadline: Oct. 23, 2020
Contact An Attorney Now:[email protected]
Hagens Berman’s VXRT Securities Class Action:
The class action, filed in the United States District Court for the Northern District of California, and captioned Himmelberg v. Vaxart, Inc., et al.,Case No. 3:20-cv-05949-VC, is brought on behalf of all investors who purchased or otherwise acquired VXRT securities during the Class Period – between June 25, 2020 and July 25, 2020,inclusive. The case seeks to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased VXRT shares during the class period, you have until Oct. 23, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained here. Click here to discuss your legal rights with Hagens Berman.
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.
The class action arises from Defendants’ alleged fraudulent scheme to profit from artificially inflating the Company’s stock price by announcing false and misleading information concerning Vaxart’s oral COVID-19 vaccine candidate.
Specifically, the Complaint alleges that on June 26, 2020, Vaxart issued a press release entitled, “Vaxart’s COVID-19 Vaccine Selected for the U.S. Government’s Operation Warp Speed,” falsely claiming its vaccine had been selected to participate in a non-human challenge study, organized and funded by OWS. This announcement sent the price of Vaxart shares rocketing higher.
In furtherance of the scheme, Defendants amended controlling shareholder Armistice’s existing warrant agreements, allowing Armistice to exercise all of its warrants immediately and sell 27.6 million Vaxart shares, reaping profits of approximately $200 million. Defendants also issued millions of dollars in favorable stock options to Vaxart’s most senior executives.
The Complaint alleges that on July 25, 2020, details emerged revealing Defendants’ deception concerning their alleged pump and dump scheme. In particular, on July 25, 2020, The New York Times published an article entitled, “Corporate Insiders Pocket $1 Billion in Rush for Coronavirus Vaccine,” covering 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, and it clarified “Vaxart is not among the companies selected to receive significant financial support from Warp Speed.” In response to this news, the price of Vaxart shares dropped sharply lower on July 27, 2020 from $12.29 to $11.16.
Most recently, on Oct. 14, 2020, Vaxart revealed it received a Grand Jury subpoena in July 2020 in connection with the U.S. Attorney’s office investigation into Vaxart’s disclosures of its participation in Operation Warp Speed, options grants, warrant transactions and other corporate and financing matters.
In addition, Vaxart revealed the SEC is investigating the same matters.
This news sent the price of Vaxart shares crashing lower.
“We’re focused on investors’ losses and proving Vaxart misled investors about OWS’s potential funding support for the Company,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Vaxart should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected]
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
SOURCE: Hagens Berman Sobol Shapiro LLP
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