WASHINGTON, Sept 26 (Reuters) - Shares of Cassava

Sciences ( SAVA ) fell 10% in post-market trading on Thursday

after the U.S. Securities and Exchange Commission charged the

biopharmaceutical company and two former executives for

misleading claims about the results of Alzheimer's clinical

trials.

The misleading statements were made in September 2020 about

the results of a phase two clinical trial for Cassava's

purported drug treatment for Alzheimer's, the SEC said.

Cassava's shares dropped to $28.37 in extended-hours

trading. It had closed at $31.87 during regular hours on

Thursday.

The SEC said Cassava will pay $40 million to settle the

civil charges, while Remi Barbier, the company's founder and

former CEO, and Lindsay Burns, its former senior vice president

of neuroscience, will pay $175,000 and $85,000, respectively, to

settle the charges.

Hoau-Yan Wang, a City University of New York Medical School

professor and a consultant for Cassava who helped to develop the

Alzheimer's drug, was also charged by the SEC for manipulating

the trial results.

The SEC said Cassava misled investors by saying its

Alzheimer's drug "significantly improved patient cognition." It

failed to disclose that a full set of patient data actually

showed "no measurable cognitive improvement in the patients'

episodic memory."

The company also failed to disclose Wang's role in the

clinical trial and his personal, financial, and professional

interests in the drug's success, the SEC said, adding he agreed

to pay a $50,000 penalty.

Cassava said in a statement that it cooperated fully with

the SEC's investigation and has implemented remedial measures.

It also said it does not currently anticipate criminal charges

from the Department of Justice.