Vaxart Insiders Lose Bid to Thwart Trial in Investor Class Suit

Armistice Capital LLC must defend against investor class allegations it conspired to have Vaxart Inc. release misleading statements about an experimental Covid-19 vaccine in 2020, a federal judge ruled.

A reasonable jury could find the hedge fund and its executives furthered a scheme to deceive investors and engaged in insider trading, Judge Vince Chhabria said in an order denying their motion for summary judgment on Monday. His ruling potentially sends the case on for trial, a rarity in the realm of securities class actions.

The US District Court for the Northern District of California judge said information presented throughout ...