Covid-19 vaccine company under federal investigation after allegedly misrepresenting its role ...

[sl8]

https://www.cnn.com/2020/10/18/business/vaxart-sec-investigation/index.html

Covid-19 vaccine company under federal investigation after allegedly misrepresenting its role in government program Operation Warp Speed

By Shannon Liao, CNN Business

Updated 10:49 AM ET, Sun October 18, 2020

New York (CNN Business)California biotech company Vaxart, which is working on a Covid-19 vaccine, is under federal investigation and is being sued by a number of investors for allegedly exaggerating its involvement in the US government's Operation Warp Speed program for developing Covid-19 vaccines and treatments.

Vaxart stated in an October 14 Securities and Exchange Commission filing that it's being investigated by the SEC and federal prosecutors, and that it was served with a grand jury subpoena in July from the US District Court for the Northern District of California.

In June, Vaxart (VXRT) issued a press release that said "Vaxart's Covid-19 Vaccine Selected for the US Government's Operation Warp Speed." The news helped propel Vaxart's stock price to nearly $17, up from approximately $3, and hedge fund Armistice Capital, which partly controlled Vaxart, sold shares for a profit of more than $200 million, according to its SEC filings.

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[Eugene]

1. "The statements made in that press release are accurate..." from a certain point of view.

My reading of the June 26 press release is that it starts with a factual statement and then dials the significance up to 11. The CEO makes a strong statement of possibilities that can be interpreted as a significant accomplishment.

Lots of billable work for lawyers on all sides, but the is one of the last things the vaccine effort needs.