CASSAVA SCIENCES INC 8-K

What Happened

• Cassava Sciences Inc. (SAVA) filed an 8-K on December 23, 2025 reporting that plaintiffs and the company accepted a double-blind mediator’s recommendation embodied in a binding term sheet to settle a consolidated securities class action for $31.25 million. The plaintiffs filed a Final ADR Report on December 19, 2025; the Mediator was David M. Murphy.
• The Consolidated Securities Action began as four putative class suits filed between August 27 and October 26, 2021 and was consolidated by the Texas District Court on June 30, 2022. The class covers purchasers/acquirers of Cassava common stock (and certain option traders) between September 14, 2020 and October 12, 2023 (with exclusions). The term sheet provides releases to the settling defendants and, although Remi Barbier and Lindsay Burns did not sign, they are indemnified by Cassava and entitled to releases upon final court approval.

Key Details

• Settlement amount: $31.25 million to be paid by Cassava and expected to be placed into escrow in January 2026.
• Filing and mediation dates: Final ADR Report filed Dec 19, 2025; consolidated case created June 30, 2022; original suits filed Aug–Oct 2021.
• Released parties: Cassava and named settling defendant Eric J. Schoen; non-settling defendants Barbier and Burns will receive releases and are indemnified by Cassava if the settlement is approved.
• Company accounting: Cassava recorded a $31.25 million loss contingency in Q2 2025 for this matter.
• Next steps: Parties will file a formal stipulation and motion for preliminary approval with the Texas District Court, followed by class notice and a later final approval hearing.

Why It Matters

• For investors, the settlement largely resolves a major securities litigation exposure with a fixed cash cost of $31.25M (which the company says it already reserved in Q2 2025), reducing legal uncertainty. The settlement is not an admission of wrongdoing and still requires preliminary and final court approval before becoming effective. The expected escrow payment in January 2026 will be the near-term cash impact if approvals proceed.