Shares of Cassava Sciences Inc. dropped more than 10% in the extended session Thursday after announcing a settlement with U.S. securities regulators, who had charged the pharma company and two former executives for “misleading claims” about an Alzheimer’s clinical trial.

The Securities & Exchange Commission (SEC) has accused Cassava's founder and former chief executive Remi Barbier and former head of neuroscience Dr Lindsay Burns of misleading investors by announcing that the company’s small-molecule therapeutic simufilam significantly improved patient cognition in the phase 2b study.

Alzheimer’s drug developer Cassava Sciences Inc (NASDAQ:SAVA), its founder Remi Barbier, and former Senior VP of Neuroscience Lindsay Burns have agreed to pay over $40 million to resolve SEC charges over misleading statements related to a Phase 2 trial of the company’s controversial Alzheimer’s drug,

Cassava and former executives were charged Thursday by the SEC with making misleading claims in 2020 about trials for the Alzheimer's drug simufilam, and agreed to pay fines.

Shares of Cassava Sciences fell 10% in post-market trading on Thursday after the U.S. Securities and Exchange Commission charged the biopharmaceutical company and two former executives for misleading claims about the results of Alzheimer's clinical trials.

Cassava Sciences has agreed to pay $40 million to resolve an investigation into claims it made m | Cassava Sciences has agreed to pay $40 million to resolve an investigation into claims it made misleading statements about phase 2b data on its Alzheimer’s disease drug candidate.

A former Alzheimer's researcher manipulated the results of a Cassava Sciences drug, with the pharmaceutical company and its former chief executive reaching a $40 million settlement with the Securities and Exchange Commission over allegedly misleading the public.