Shareholders of Covid-19 vaccine developer Vaxart Inc. adequately stated insider trading and scheme participation claims against Armistice Capital LLC, a hedge fund linked to Vaxart, a federal court ruled.
“Accepting the allegations in the complaint as true, the Armistice Defendants did not merely trade on material nonpublic information; they participated in an intentional scheme to manipulate the price of Vaxart shares for the purpose of selling them at an artificially inflated price,” Judge Vince Chhabria said Thursday for the US District Court for the Northern District of California.
- The investors alleged Vaxart plotted to inflate its stock price with false ...