Covid-19 vaccine firm below federal investigation after Covid-19 vaccine firm below federal investigation over allegedly misrepresenting its function in authorities program Operation Warp Speed misrepresenting its function in authorities program Operation Warp Speed

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



Vaxart acknowledged in an October 14 Securities and Exchange Commission filing that it is 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 launch that stated “Vaxart’s Covid-19 Vaccine Selected for the US Government’s Operation Warp Speed.” The information helped propel Vaxart’s inventory value to just about $17, up from roughly $3, and hedge fund Armistice Capital, which partly managed Vaxart, bought shares for a revenue of greater than $200 million, in keeping with its SEC filings.

A number of weeks earlier than the announcement, Vaxart granted amendments to the warrants agreements, which allowed Armistice to promote virtually all of their inventory, which they did as soon as the inventory value skyrocketed.

In July, the US Department of Health and Human Services (HHS) told the New York Times that it had not entered right into a funding settlement or negotiations with Vaxart. Armistice and HHS didn’t reply to requests for remark.

Vaxart has not been chosen by Operation Warp Speed to obtain analysis funding, however as a substitute had restricted involvement, HHS advised the New York Times in July. Vaxart’s vaccine, an oral pill, was solely concerned in preliminary research on primates sponsored by Warp Speed.

In an announcement to Source Business Saturday, the corporate stated, “The Vaxart non-human primate challenge study was organized and funded by Operation Warp Speed, as stated in the June 26, 2020 company press release. The statements made in that press release are accurate and any allegation to the contrary is baseless.”

In its October SEC submitting, Vaxart wrote that it has offered paperwork known as for by the subpoena to reveal its function in Operation Warp Speed. “The company has voluntarily provided documents requested by the SEC and is cooperating with this informal inquiry,” it acknowledged.

Vaxart and its board have been sued several times by shareholders who accuse the corporate of allegedly inflating Vaxart’s inventory value by misrepresenting its function in Operation Warp Speed. Vaxart addressed these lawsuits in its submitting, saying that it is looking for to have two of the fits dismissed, whereas one other class-action go well with continues to be continuing.

On October 14, Vaxart introduced encouraging outcomes from its research on hamsters that acquired oral dosages of its Covid-19 vaccine.

The inventory was down 3.5%, to roughly $6, as of Friday night.

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