Drugmaker, 2 executives to pay $40M to settle misleading claims allegations

Biopharmaceutical company Cassava Sciences, along with founder Remi Barbier and former Senior Vice President of Neuroscience Lindsay Burns, PhD, will pay more than $40 million to settle allegations related to misleading claims about a clinical trial for its Alzheimer’s disease treatment. 

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A Securities and Exchange Commission investigation found that consultant Hoau-Yan Wang, PhD, an associate professor at the City University of New York, manipulated the clinical trial data using unblinded information, creating a false impression of significant improvements in biomarkers related to Alzheimer’s. 

In addition to financial penalties, Mr. Barber and Dr. Burns agreed to bars of three and five years, respectively, from serving as officers or directors. The settlements are pending court approval, and Dr. Wang faces a $50,000 penalty for his role.

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