HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Reminds Vaxart (VXRT) Investors of Securities Fraud Class Action and Upcoming Deadline, Encourages Investors with Significant Losses to Contact the Firm
San Francisco, California--(Newsfile Corp. - September 24, 2020) - Hagens Berman announces that it has filed a class action lawsuit against Vaxart, Inc. (NASDAQ: VXRT) and certain of its senior executives. The firm urges VXRT investors who have suffered losses to submit their losses now to learn if they qualify to recover their investment losses.
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.
"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.
Lead Plaintiff Process: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased VXRT securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than Oct. 23, 2020, which is the first business day on which the U.S. District Court for the Northern District of California is open that is 60 days after the publication date of Aug. 24, 2020. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice. Members may also choose to do nothing and remain part of the proposed Class.
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 VXRT@hbsslaw.com.
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About Hagens Berman
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/64607