In addition to the SEC charges, Wang faces criminal charges from a Department of Justice (DOJ) indictment in June for allegedly falsifying scientific data in grant applications to the National Institutes of Health (NIH). Wang has agreed to a $50,000 civil penalty and to cease and desist from future violations of securities laws, without admitting or denying the allegations.
SEC Fines Cassava $40M : SEC’s Commitment to Market Integrity
“Today’s actions — which include charges against senior executives and significant monetary relief against Cassava — reflect our commitment to upholding public confidence in the market’s ability to accelerate legitimate scientific advances,” said Mark Cave, associate director of the SEC’s Division of Enforcement.
The SEC complaint also points to misleading statements by Cassava, including claims that simufilam improved cognition in Alzheimer’s patients, despite excluding 40% of the participants from the analysis. The SEC further alleges that Cassava failed to disclose Wang’s role in the trials, thereby concealing his conflict of interest due to his financial and professional ties to the company.
Cassava’s Response and Ongoing Trials
Cassava Sciences issued a statement noting that they are “pleased to put this matter behind us” and emphasizing their focus on completing Phase 3 trials of simufilam. Richard Barry, who was appointed executive chairman in July, stated the company remains hopeful that simufilam will eventually gain approval from the U.S. Food and Drug Administration (FDA) and help those suffering from Alzheimer’s.
