The U.S. Justice Department has opened a criminal investigation into Cassava Sciences Inc (NASDAQ: SAVA) on whether it manipulated research results for its investigational Alzheimer's drug, Reuters reported citing two people familiar with the inquiry.
"To be clear: Cassava Sciences vehemently denies any and all allegations of wrongdoing," said Kate Watson Moss, a lawyer representing Cassava.
The company "has never been charged with a crime, and for a good reason - Cassava Sciences has never engaged in criminal conduct," Watson added.
Watson Moss said, "Cassava Sciences has provided information in response to these requests in full satisfaction of its legal obligations." Watson Moss added that no government agency had accused the company of wrongdoing.
The company is already under SEC scrutiny after two physicians alleged data manipulation and the misrepresentation of the company's Alzheimer's drug, simufilam.
Price Action: SAVA shares are down 39.5% at $13.15 during the premarket session on the last check Wednesday.
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