Cassava to Pay $40 Million to SEC Over Alzheimer’s Drug Claims

Drugmaker Cassava Sciences Inc. and two former executives agreed to pay more than $40 million to resolve US Securities and Exchange Commission claims they misled the public about the success of an Alzheimer’s drug trial.

Cassava published results in 2020 based on hand-selected data that showed patients’ memories improved, though the full data showed no measurable progress, the SEC said in a statement Thursday announcing the settlement. The company later raised hundreds of millions of dollars in funding, the regulator said.

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