Cassava Sciences (NASDAQ:SAVA) shares advanced 2.75% on Thursday after the biotech firm disclosed that the U.S. Department of Justice has formally closed its investigation into allegations of research misconduct.
The inquiry stemmed from claims outlined in the indictment in United States v. Wang, a case the DOJ dismissed with prejudice on October 23, 2025. The update follows Cassava’s earlier resolution with the U.S. Securities and Exchange Commission in September 2024, when the company settled negligence-based disclosure allegations by paying a civil penalty without admitting or denying wrongdoing.
“We welcome the resolution of these investigations and remain dedicated to maintaining the trust of all our stakeholders. As we move forward, we will continue to focus our efforts on developing a novel treatment for TSC-related epilepsy,” said Richard J. Barry, President and Chief Executive Officer of Cassava.
Cassava, which is developing investigational therapies for central nervous system conditions including Tuberous Sclerosis Complex (TSC)-related epilepsy, said it fully cooperated with both federal investigations. With the DOJ’s decision, the company noted that all outstanding federal probes have now been concluded.
The market reaction reflected investor relief, as the closure of the regulatory overhang removes a key source of uncertainty surrounding the company’s operations and long-term strategy.