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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Novavax, Inc. (NVAX)

November 16, 2021 GMT

NEW YORK, Nov. 16, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against of Novavax, Inc. (“Novavax” or the “Company”) (NASDAQ: NVAX) in the United States District Court for the District of Maryland on behalf of those who purchased Novavax common stock between March 2, 2021 and October 19, 2021, inclusive (the “Class Period”).

The Complaint alleges that Defendants misrepresented the Company’s progress toward successfully developing its COVID-19 vaccine (NVX-CoV2373), including: (i) overstating the Company’s manufacturing capabilities and downplaying manufacturing issues that would impact the approval timeline for NVX-CoV2373; (ii) concealing that the Company was unlikely to meet its anticipated EUA regulatory timelines; (iii) exaggerating the regulatory and commercial prospects for NVX-CoV2373.

On May 10, 2021, The Washington Post reported the EUA filing for the vaccine was delayed to June at the earliest due to manufacturing issues. Later that day, the Company confirmed it was unlikely to seek EUA for NVX-CoV2373 until July at the earliest. In August, the Company pushed the expected EUA filing into Q4 2021.

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On August 5, 2021, the Company reported that it expected to file for NVX-CoV2373’s EUA in the fourth quarter of 2021, rather than the third quarter of 2021. On this news, the Company’s stock price fell by more than 19%.

Then, on October 19, 2021, Politico published an article entitled “‘They rushed the process’: Vaccine maker’s woes hamper global inoculation campaign.” The Politico article reported, in relevant part, that the Company “faces significant hurdles in proving it can manufacture a shot that meets regulators’ quality standards” with respect to NVX-CoV2373. The Politico article cited anonymous sources as stating that the Company’s “issues are more concerning than previously understood” and that the Company could take until the end of 2022 to resolve its manufacturing issues and win regulatory authorizations and approvals. On this news, the Company’s stock price fell another 14.7%, further damaging investor.

Investors who purchased or otherwise acquired shares of Novavax during the Class Period should contact the Firm prior to the January 11, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.