Overview of the Novavax Coronavirus Vaccine Class Action Settlement
Novavax, the pharmaceutical company behind a Covid vaccine, has reached an agreement to settle a class action lawsuit and establish a $47 million fund to compensate investors who allege they were defrauded by the company. The securities class action lawsuit, initially filed in 2021, claims that Novavax knowingly made false statements about its capacity and ability to produce a Coronavirus vaccine and to commercialize it effectively. The lawsuit also accuses Novavax of misleading investors by exaggerating its chances of timely regulatory approval, particularly from the FDA.
After failing to dismiss the original class action complaint in 2022, Novavax has entered into a binding agreement to fund the $47 million settlement, which will be distributed to eligible investors and claimants. The company plans to fully cover this settlement using liability insurance, as it has faced significant financial challenges, including a series of revenue downgrades from 2022 to 2024. While the settlement has been agreed upon and certified, it still requires final approval from the presiding judge and court.
How Do I Qualify for a Payout?
To qualify for a payout from the Novavax class action settlement, investors must have purchased Novavax stock between February 24, 2021, and October 19, 2021. Note that these dates and details may change, so check back later for updates regarding the claims process.
What Are Securities Class Action Lawsuits?
Securities class action lawsuits are initiated by a group of investors against a company and its executives, alleging the dissemination of false or misleading information or failure to disclose critical information that could affect investment decisions. Key aspects of these lawsuits include:
- Breach of Securities Laws: The lawsuits often involve claims of violations of U.S. federal securities laws, such as the Securities Act of 1933 and the Securities Exchange Act of 1934, which are intended to ensure transparency and fairness in financial markets.
- Material Misrepresentations or Omissions: Plaintiffs claim that the company made significant misstatements or omissions in public disclosures, influencing investors’ decisions to buy or sell securities.
- Lead Plaintiff Role: In the U.S., the lead plaintiff represents the class and is typically the investor or group with the most significant financial stake in the outcome.
- Investor Recovery: If the lawsuit is successful, any monetary recovery or changes in corporate governance will be distributed among class members.
- Regulatory Involvement: Securities class actions may be accompanied by investigations from regulatory bodies like the U.S. Securities and Exchange Commission (SEC).
How Much Can I Expect to Be Paid?
The exact payout amount per stock or claimant is currently unknown. Please check this page for updates.
How Do I File a Claim?
The Novavax class action settlement is not yet open for claims. This page will be updated once a claims website or further information becomes available.