Coronavirus
COVID-19 Vaccine Company Under Investigation for Allegedly Misrepresenting its Role
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.
