Labaton Keller Sucharow secured a $47 million settlement as co-lead counsel in a securities class action lawsuit against Novavax, Inc. (Novavax) and certain of its executives.
Novavax is a pharmaceutical drug company that developed a vaccine against COVID-19, a process Novavax began in the early stages of the COVID-19 pandemic. On March 11, 2022, Lead Plaintiffs filed the Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws (the Complaint) asserting claims against Defendants under Section 10(b) of the Securities Exchange Act of 1934 (the Exchange Act), and Rule 10b-5 promulgated thereunder, and against the Individual Defendants under Section 20(a) of the Exchange Act. Among other things, the Complaint alleged that Defendants made materially false and misleading statements and omissions with respect to the production and development of Novavax’s COVID-19 vaccine candidate. The Complaint further alleged that the price of Novavax common stock was artificially inflated as a result of Defendants’ allegedly false and misleading statements and omissions and declined when the truth was allegedly revealed through a series of partial corrective disclosures.
On April 25, 2022, Defendants filed a motion to dismiss the Complaint, which Lead Plaintiffs opposed. On December 12, 2022, the Court entered a Memorandum Opinion denying in part and granting in part Defendants’ motion to dismiss the Complaint, which eliminated some of the Complaint’s alleged misstatements, dismissed the claims against some individual Defendants, and shortened the class period (the MTD Opinion).
The Parties engaged in formal discovery and, in total, approximately 58,000 documents were produced by the Parties and third parties in formal discovery.
In March 2023, Lead Plaintiffs filed their motion for class certification and appointment of class representatives and class counsel, which Defendants opposed. In connection with Lead Plaintiffs’ class certification motion, Defendants deposed each of the Lead Plaintiffs, as well as Lead Plaintiffs’ market efficiency and price impact expert, among others.
Following two separate mediation sessions, the Parties agreed to a resolution and executed a Stipulation of Settlement on January 12, 2024.
The case is Sinnathurai v. Novavax, Inc., et al., Case No. 8:21-cv-02910-TDC in the United States District Court for the District of Maryland. The action is assigned to the Honorable Theodore D. Chuang, United States District Judge. Labaton Keller Sucharow represents plaintiff David Truong.
Submit Claim Form
If you purchased or otherwise acquired the publicly traded common stock of Novavax during the Class Period (May 11, 2021, through October 19, 2021, inclusive), you be entitled to a payment from a class action settlement. To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by May 18, 2024.
Settlement Hearing
The Settlement Hearing was held on May 23, 2024, at 2:30 p.m., either remotely or in person, at the United States Courthouse, United States District Court, District of Maryland, 6500 Cherrywood Lane, Greenbelt, MD 20770
If you have questions about the Settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com or 888 219-6877, or contact the Claims Administrator, at (866) 274- 4004.
Additional information about the Settlement can also be found at www.strategicclaims.net/novavax/.
