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Classified D&O action against the vaccine development company



A suspected class action lawsuit has been filed against a vaccine development company that allegedly issued false information about its COVID-19 vaccine to increase its share and earned a $ 200 million hedge fund investor.

In a separate lawsuit, a shareholder dispute was filed last week against a software company that has been accused of issuing false information about COVID-19 testing devices to increase its share price.

Both lawsuits have been reported by D&O Diary.

Vaccine Development Company, headquartered in South San Francisco, founded in 2004, has 14 full-time employees, a market capitalization of $ 17 million and has never successfully developed a vaccine, according to the lawsuit filed Monday in the U.S. District Court in San Francisco. i Kirk Himmelberg v. Vaxart Inc.

In early 2020, the company began working on a vaccine against COVID-1

9.

Hedge Fund Armistice Capital Inc., based in New York, of which I am a defendant in the lawsuit, has two board members who are also defendants. The armistice held shares and warrants corresponding to approximately 30% of the company's outstanding shares.

On June 8, 2020, Armistice's existing warrant agreement was amended so that it could potentially exercise its warrants on approximately 21 million shares in Vaxart immediately and during the next week, defendants also issued millions of dollars in preferential options to Vaxart's senior executives, according to the complaint.

On June 25, Vaxart announced that it had reached an agreement with another company to enable the production of at least one billion COVID-19 vaccine doses annually and its stock almost doubled in price. The next day, the company announced that its vaccine had been selected for the federal "Warp Speed" study and its stock increased again. the company from 29% to 0.2% and earned a profit of about $ 200 million, according to the complaint.

Then an article in the New York Times that featured Vaxart prominently reported that it was not among the selected companies to receive significant financial support for the Warp Speed ​​and the price dropped.

The lawsuit accuses the company of violating securities laws by providing false and misleading information in order to artificially inflate its stock.

Speakers at Waxart and weapons permit could not be reached for comment.

In the second lawsuit, New York-based SCWorx Corp. announced on April 13 that they had received a purchase order for two million antibody test kits at $ 17.50 per unit, and the share price more than quadrupled in price, according to the lawsuit filed on April 21 at the U.S. District Court in New York against the company's board members and / or officer in Josstyn Richter, derived, on behalf of SCWorx Corp. Schessel, Charles K. Miller, Robert Christie and Steven Wallitt.

The next day, a card sales company published a report questioning the defendant's credibility and the stock fell 30% in value. Three days later, a forensic finance company published a report concluding that the purchase order was "completely false" and the stock fell another 17%.

The US Securities and Exchange Commission suspended trading in the stock on April 21. [19659002] On April 30, the company announced that it had closed its purchase order due to "major concerns."

The company stated in its annual SEC Form 10-K report in June that the U.S. Attorney's Office in New Jersey requested information and documents related to the April 13 press release.

The lawsuit accuses the company of violating administrative records, unfair enrichment, abuse of control, gross mismanagement and violations of the Federal Securities Act.

A corporate spokesperson could not be

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