VXRT - NASDAQ: VXRT Investor Notice: Lawsuit against Directors of Vaxart Inc. announced by Shareholders Foundation

SAN DIEGO, CA / ACCESSWIRE / August 11, 2020 / The Shareholders Foundation, Inc. announces that a lawsuit was filed by a current investor in Vaxart, Inc. (NASDAQ:VXRT) shares over alleged breaches of fiduciary duties by certain directors of Vaxart, Inc.

Investors, who purchased shares of Vaxart, Inc. (NASDAQ:VXRT) prior to June 2020 and continue to hold any of those NASDAQ: VXRT shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Vaxart, Inc is a biotechnology company with less than 20 employees, that has been in the business of attempting to develop oral vaccines for a variety of diseases that would be administered orally, rather than by injection. Vaxart, Inc has never successfully developed a vaccine. In early 2020, Vaxart, Inc began working on a vaccine for COVID-19 and throughout 2020, Vaxart, Inc has periodically announced positive news regarding these efforts. During that time, Vaxart's stock price has dramatically increased. In fact, Vaxart, Inc's stock traded at just $0.35 per share at the beginning of 2020 and reached an all-time high of $16.97 per share on July 14, 2020.

The plaintiff alleges that equipped with the knowledge that the stock market would react very favorably to news about the development of COVID-19 treatments and vaccines certain defendants embarked upon a scheme pursuant to which they would grant manipulated, spring-loaded stock options to several of Vaxart's directors and officers.

By issuing a so called spring-loaded option, a company issues the option with an exercise price that is lower than the actual fair market value of the stock at the time of the option grant, in light of the favorable material non-public information that is known to the company, but hidden from the investing public.

The plaintiff says that the timing and pricing of these spring-loaded stock option grants personally benefited only the grant recipients at the expense of Vaxart and to the detriment of its shareholders.

The plaintiff claims that certain defendants caused Vaxart to issue two sets of manipulated, spring-loaded, stock option grants. Firstly, certain defendants authorized, or through abdication of fiduciary duty permitted, the issuance of "spring-loaded" stock option grants to and for the benefit of the current Company's Chief Executive Officer, who is also a member of its Board of Directors, and secondly, for the benefit of the former Company's Chief Executive Officer and current Chair of its Board of Directors, Vaxart's Chief Science Officer, and Vaxart's Principal Accounting Officer.

The lawsuit was also filed against Armistice Capital, LLC to recover for Vaxart, Inc damages and Armistice Capital LLC's unjust enrichment due to certain defendants and Armistice amending warrant agreements between Vaxart and Armistice for no consideration to Vaxart.

The plaintiff says that these amendments were extremely valuable to Armistice Capital, LLC, which at relevant times operated and functioned as Vaxart's controlling shareholder, and which enabled Armistice Capital, LLC to sell its 30% shareholding in Vaxart in just three days for approximately $200 million, and that these option grants and amendments to the Armistice Capital, LLC warrant agreements were effectuated on June 8, 2020, immediately prior to Vaxart Inc announcing a series of incredibly favorable Company information.

Those who purchased Vaxart, Inc. (NASDAQ: VXRT) shares should contact the Shareholders Foundation, Inc.

CONTACT:

Shareholders Foundation, Inc.
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. Any referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is only provided as a public service. It is not intended as legal advice and should not be relied upon.

SOURCE: Shareholders Foundation, Inc.