Vaxart Investors Get Class Status on Second Try Against Insider

Vaxart Inc. investors secured class certification in their suit against a controlling shareholder that allegedly dumped stock following a supposedly deceptive press release about the company’s Covid-19 vaccine, a judge ruled.

This was the investors’ second attempt to get class status in their suit against hedge fund Armistice Capital LLC that allegedly used insider information to sell most of its Vaxart shares before others learned its vaccine prospects appeared overhyped. This time, investors were able to explain how price impact and loss causation, among other factors, related to all class members and presented a damages model to account for stock ...