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Vaccine company struck with the second COVID-19 related suit



A lawsuit against shareholders' derivatives executives and officers has been filed against a vaccine development company for alleged issuance of false information about a COVID-19 vaccine.

The trial, David Stachowski, derived on behalf of Vaxart, Inc. v. Steven J. Boyd et al. which was filed in the U.S. District Court in San Francisco on September 17, follows a presumed class action lawsuit based on essentially the same allegations filed against the company in August.

The latest complaint, first reported by D&O Diary, also states that the terms of stock options owned by New York-based investor Armistice Capital Inc. were changed in June to facilitate the hedge fund, whose officials have two seats on the company's board. to quickly acquire 21

million shares. and produce a COVID-19 vaccine called Operation Warp Speed.

After the company's stock price rose in response, Armistice made a profit of more than $ 197 million, the complaint says.

The complaint also states that the company had granted stock options to its CEO Andre Floroiu, who increased the value of the options to more than $ 28 million from $ 4.3 million. Armistice and Mr. Floroiu are among the defendants in the lawsuit.

The complaint states that the company's vaccine is not part of the HHS program, but that its vaccine candidate was part of a primate trial organized by a federal authority together with the program.

The trial accuses the defendants of breaches of administrative duty, unfair enrichment and violations of the Securities Act.

A company spokesman did not respond to a request for comment.

More insurance and risk management news about the coronavirus crisis here .

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