Case Status
Active
Case Caption
In re Vaxart, Inc. Sec. Litig.
Position
Lead Counsel
Practice Areas
Court
U.S. Court for the Northern District of California
Case Number
3:20-cv-05949-VC
San Francisco
Defendant(S)
Vaxart, Inc.
Steven J. Boyd
Keith Maher, M.D.
Cezar Andrei Floroiu
Wouter W. Latour, M.D.
Robert A. Yedid
Todd C. Davis
Michael J. Finney, Ph.D.
Sean N. Tucker
Armistice Capital, LLC
Armistice Capital Master Fund Ltd.
Stock Symbol
NASDAQ: VXRT
File Date
Class Period
-
Lead Plaintiff Deadline
Phone

This is a securities fraud class action brought on behalf investors who purchased Vaxart, Inc. (“Vaxart” or the “Company”) securities between June 15, 2020 and August 19, 2020, inclusive (the “Class Period”). The action alleges claims under the federal securities laws against Vaxart, a clinical-stage vaccine developer, its senior executives, Board members, and controlling shareholder Armistice.

Commenced by Hagens Berman on August 24, 2020 after conducting an extensive investigation, the case 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.

The complaint alleges that, 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.

On July 25, 2020, the truth emerged when 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, injuring investors.

Case Timeline
Title
Second Amended Consolidated Class Action Complaint is Filed
Case Status
Date
Title
Court Approves Plaintiffs' Motion for Preliminary Approval of Partial Class Action Settlement
Case Status
Date
Title
Motion for Preliminary Approval of Settlement is filed
Description

Hagens Berman filed a motion for preliminary approval of settlement for claims against defendant Vaxart and its current and former officers in their Vaxart capacities.

Case Status
Date
Title
Court Sustains the First Amended Complaint against Vaxart and its Executives
Description

The Court issues an order on the Motion to Dismiss, sustaining claims against Vaxart, its current officers, and its former officers.  The Court stated the complaint "makes a strong case that Vaxart and its officers intended to mislead the investing public."  

Case Status
Date
Title
First Amended Complaint is filed
Description

Hagens Berman filed a robust First Amended Complaint, providing additional allegations of Defendants' fraud.

Case Status
Date
Title
Court Grants Plaintiffs Leave to Amend
Description

The Court grants Plaintiff's motion for leave to amend the complaint to allege new and additional facts concerning Defendants' fraud.

Date
Title
Consolidated Amended Complaint is filed
Description

Hagens Berman filed the Consolidated Amended Complaint against Vaxart on January 29, 20213

Case Status
Date
Title
Hagens Berman is appointed Lead Counsel
Description

On December 3, 2020, U.S. District Judge Vince Chhabria appointed Hagens Berman as Lead Counsel in the case against Vaxart concerning the Company allegedly announcing false and misleading information concerning their oral COVID-19 vaccine candidate.

Case Status
Date
Title
Hagens Berman Files Initial Complaint
Description

After conducting an extensive investigation, Hagens Berman files the initial complaint against Vaxart.

Case Status
Date

CASE TIMELINE

Second Amended Consolidated Class Action Complaint is Filed
Court Approves Plaintiffs' Motion for Preliminary Approval of Partial Class Action Settlement
Motion for Preliminary Approval of Settlement is filed

Hagens Berman filed a motion for preliminary approval of settlement for claims against defendant Vaxart and its current and former officers in their Vaxart capacities.

Court Sustains the First Amended Complaint against Vaxart and its Executives

The Court issues an order on the Motion to Dismiss, sustaining claims against Vaxart, its current officers, and its former officers.  The Court stated the complaint "makes a strong case that Vaxart and its officers intended to mislead the investing public."  

First Amended Complaint is filed

Hagens Berman filed a robust First Amended Complaint, providing additional allegations of Defendants' fraud.

Court Grants Plaintiffs Leave to Amend

The Court grants Plaintiff's motion for leave to amend the complaint to allege new and additional facts concerning Defendants' fraud.

Consolidated Amended Complaint is filed

Hagens Berman filed the Consolidated Amended Complaint against Vaxart on January 29, 20213

Hagens Berman is appointed Lead Counsel

On December 3, 2020, U.S. District Judge Vince Chhabria appointed Hagens Berman as Lead Counsel in the case against Vaxart concerning the Company allegedly announcing false and misleading information concerning their oral COVID-19 vaccine candidate.

Hagens Berman Files Initial Complaint

After conducting an extensive investigation, Hagens Berman files the initial complaint against Vaxart.

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