NEW YORK, Aug. 25, 2020 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of investors that purchased Vaxart, Inc. (NASDAQ: VXRT) securities between June 25, 2020 and July 25, 2020 (the “Class Period”). Investors have until October 23, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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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, including its purported involvement in the government funded “Operation Warp Speed.”
In furtherance of the scheme, defendants amended controlling shareholder Armistice Capital LLC’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, 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.”
On this news, the price of Vaxart shares declined significantly on July 27, 2020 from $12.29 per share to $11.16 per share.
The complaint, filed on August 24, 2020, alleges that during the Class Period, defendants engaged in a scheme to deceive the market and a course of conduct that artificially inflated the prices of Vaxart’s securities and operated as a fraud or deceit on Class Period purchasers of Vaxart’s securities by failing to disclose to investors that the Company’s financial results were materially misleading and misrepresented material information. When defendants’ misrepresentations and fraudulent conduct were disclosed and became apparent to the market, the prices of Vaxart’s securities fell precipitously as the prior inflation came out of the Company’s stock price.
If you purchased Vaxart securities during the Class Period and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com