Vaxart Board Let Fund Insider Trade on Covid Vaccine: Suit (1)

Vaxart Inc.'s board was hit with a Delaware lawsuit claiming it helped a hedge fund linked to it, Armistice Capital LLC, make hundreds of millions on insider trades around news that Vaxart would be getting federal funding for its work on a Covid-19 vaccine.

“Through their disloyal behavior, the board members have secured substantial sums for themselves and Armistice Capital, to the detriment of Vaxart,” the Chancery Court complaint says.

The partly redacted shareholder lawsuit, which also targets Armistice, was made public Wednesday, two days after Vaxart announced that the U.S. Food and Drug Administration had cleared the way for ...