Vaxart Investors Come Up Empty in Trial Against Insider Fund (2)

Vaxart Inc.'s former majority shareholder Armistice Capital LLC isn’t liable to a class of other Vaxart investors for having allegedly engaged in insider trading and a manipulative scheme during the race to develop a Covid-19 vaccine, a federal jury found Tuesday.

The investors failed to prove a scheme to defraud by Armistice or executives Steve Boyd and Keith Maher, and they didn’t show insider trading by Boyd or the hedge fund, the jury found.

The trial testing the investors’ claims against the hedge fund and two of its executives took place in the US District Court for the Northern ...