Why Cassava Sciences Stock Dived by Almost 11% Today
Cassava Sciences (NASDAQ: SAVA) ended the week with a piece of dispiriting news. It's going to reach deep into its coffers to settle charges brought by the most important financial-markets regulator governing its affairs.
Many investors had enough of the company and sold off its stock to the point where it lost nearly 11% of its value across the Friday trading session. That was a far steeper fall than the 0.2% sag of the S&P 500 index on the day.
Before market open, Cassava announced that it has reached agreement with the U.S. Securities and Exchange Commission (SEC) to settle allegations of negligence-based disclosures. The clinical-stage biotech is to pay $40 million in cash in the settlement, and as part of its terms is neither admitting nor denying the allegations.
Source Fool.com
