Vaxart Insiders Under Investigation for Insider Trading Related to COVID-19 Vaccine

Schubert Jonckheer & Kolbe LLP is investigating potential legal claims against Vaxart, Inc. (Nasdaq: VXRT) and certain of its insiders on behalf of shareholders.

The firm’s investigation relates to stock sales made by the corporation’s largest shareholder in June 2020. According to an article published by the New York Times on July 25, 2020, Vaxart’s largest shareholder, hedge fund Armistice Capital, has made substantial profits from the rush for the coronavirus vaccine. In the spring of 2020, Vaxart began development of an orally administered COVID-19 vaccine. During this time, Vaxart also amended the terms of its warrants agreement with Armistice Capital making it easier for the hedge fund to rapidly acquire and sell shares.

On June 26, 2020, Vaxart issued a news release announcing that it had been selected for Operation Warp Speed, the federal initiative to quickly develop drugs to combat the coronavirus. The truth was more complex. Vaxart’s COVID-19 vaccine candidate was included in a trial on primates that a federal agency organized in conjunction with Operation Warp Speed. However, Vaxart is not among the companies selected to receive significant financial support from Operation Warp Speed. Following Vaxart’s June 26th announcement, Armistice exercised its newly amended warrants to buy nearly 21 million Vaxart shares and immediately sold them, making an immense $197 million profit.

We are investigating potential legal claims based on the reconfigured warrants agreement when company insiders may have known about Vaxart’s role in Operation Warp Speed.

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