Novavax, Inc.

Investigation
11/12/2021

Initial Lawsuit
11/12/2021

Lawsuit Progression
01/26/2022

Investigation

Continous Holding
March 2, 2021 to October 19, 2021
Proposed Claim
Securities Violation

Investigation regarding Novavax’s statements made in connection with the manufacturing capabilities and ability to meet regulatory timelines for approval of its NVX-CoV2373 Covid-19 vaccine candidate under Emergency Use Authorization (EUA).

Main Event

Meet "regulators’ quality standards"

10/19/2021

News Outlets

Politico reports that, with respect to NVX-CoV2373, not only does Novavax “faces significant hurdles in proving it can manufacture a shot that meets regulators’ quality standards” but “the company’s issues are more concerning than previously understood, according to two of the people with direct knowledge of the matter.”

“The Food and Drug Administration works out purity levels with each manufacturer according to June 2020 guidance for coronavirus vaccines, but it is generally understood that each vaccine batch should reach at least 90 percent. The company has struggled to attain anywhere close to that, one of the people with direct knowledge of the situation said. Another person familiar with the company’s manufacturing process said Novavax has recently shown purity levels hovering around 70 percent. . .”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$136.86	$160.55	$-23.69	-14.76%

See more on Factual Timeline

Initial Lawsuit

First Complaint - 11/12/2021

This is a federal securities class action on behalf of a class consisting of all persons and entities other than defendants that purchased or otherwise acquired Novavax securities between March 2, 2021 and October 19, 2021, both dates inclusive.

Filing Date
11/12/2021
Class Period
03/02/2021 to 10/19/2021
Transgression
Securities Violation
Filing Firms
Cohen Milstein Sellers & Toll PLLC
Pomerantz LLP
Case Title
Sinnathurai v. Novavax, Inc. et al
Docket Number
8:21-cv-02910
Court
Maryland District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) Novavax overstated its manufacturing capabilities and downplayed manufacturing issues that would impact its approval timeline for NVX-CoV2373;
(ii) as a result, Novavax was unlikely to meet its anticipated EUA regulatory timelines for NVX-CoV2373;
(iii) accordingly, the Company overstated the regulatory and commercial prospects for NVX-CoV2373; and
(iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.

Defendants

Company
Novavax, Inc.
Chief Executive Officer
Stanley C. Erck
Chief Financial Officer
Gregory F. Covino
Chief Financial Officer
John J. Trizzino

Lawsuit progression

Docket Number
8:21-cv-02910
Court
Maryland District Court

Lead Counsel

01/26/2022

The court issued an order appointing the lead plaintiff and lead counsel.

Lead Counsel
Labaton Sucharow LLP
Pomerantz LLP
Lead Plaintiff
Group of Individuals
Free File
Order for lead

Amended Complaint

03/11/2022

Lead Plaintiffs, individually and on behalf of all persons and entities who or which, during the period from February 24, 2021 through October 19, 2021, inclusive, purchased the publicly traded common stock of Novavax, Inc. and were damaged thereby, bring this Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws against Defendants Novavax and several of Novavax’s senior executives—President and Chief Executive Officer (CEO) Stanley C. Erck, former Treasurer, Chief Financial Officer (CFO) and Executive Vice President (EVP) Gregory F. Covino, former CFO and current Chief Commercial Officer, Chief Business Officer, and EVP John J. Trizzino, and President of Research and Development Gregory Glenn.