### Cassava Sciences Faces $40 Million SEC Settlement Over Misleading Alzheimer's Drug Trial Data

Cassava Sciences Inc. has agreed to a substantial $40 million settlement with the Securities and Exchange Commission (SEC) following accusations of data manipulation in a clinical trial for their Alzheimer’s disease drug. The decision to settle comes after the SEC charged Cassava and two former executives with making misleading statements regarding the trial's outcomes.

The SEC claims that Cassava provided deceptive information in September 2020 about the results of a Phase 2 trial for its drug simufilam. The investigation concluded that a medical professor involved in developing the drug tampered with the data, giving the false impression that the drug had notably improved biomarkers associated with Alzheimer’s disease. Despite agreeing to the settlement, Cassava did not admit to nor deny the SEC's allegations.

According to the SEC, the company falsely assured investors that the trial was conducted under blind conditions and failed to disclose the co-developer’s involvement. Further, Cassava selectively presented only portions of the data to create an impression that simufilam enhanced patients' cognitive abilities, omitting other relevant information.

Aside from the $40 million settlement from the company, former CEO Remi Barbier is individually responsible for a payment of $175,000. Another senior executive has also been implicated in the case. Leadership changes followed the settlement, with Richard Barry assuming the role of CEO earlier this month, having been named the executive chairman in July.

The market reacted to the news, with shares of Cassava Sciences dropping over 11%. However, it's noteworthy that, despite this recent slump, Cassava’s shares have appreciated by approximately 25% over the year.