09:02 AM EST, 12/23/2025 (MT Newswires) -- Cassava Sciences ( SAVA ) said Tuesday it has agreed to pay $31.25 million as settlement for a securities class action accusing the company of misleading investors on the prospects of its investigational drug simufilam for the treatment of Alzheimer's disease.

The company said it reserved a loss contingency of $31.25 million in Q2 related to the litigation, which was originally filed in 2021.

The settlement will resolve all claims made by purchasers or acquirers of the company's common stock or stock call options, or sellers of stock put options between Sept. 14, 2020, and Oct.12, 2023, the company said.

Cassava said the settlement is not an admission of fault or wrongdoing.

The company said it will now focus on continuing to develop simufilam to potentially treat tuberous sclerosis complex-related epilepsy.

Shares of Cassava were down more than 1% in recent premarket activity Tuesday.