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Covid-19 vaccine company under federal investigation over allegedly misrepresenting its role in government program Operation Warp Speed
Vaxart stated in an October 14 Securities and Exchange Commission filing that it's being investigated by the SEC and federal prosecutors, and that it was served with a grand jury subpoena in July from the US District Court for the Northern District of California.
In June, Vaxart (VXRT) issued a press release that said "Vaxart's Covid-19 Vaccine Selected for the US Government's Operation Warp Speed." The news helped propel Vaxart's stock price to nearly $17, up from approximately $3, and hedge fund Armistice Capital, which partly controlled Vaxart, sold shares for a profit of more than $200 million, according to its SEC filings.
A few weeks before the announcement, Vaxart granted amendments to the warrants agreements, which allowed Armistice to sell almost all of their stock, which they did once the stock price skyrocketed.
