Cassava Lawsuit: Appeals Court Throws Out the Investor Class
Active Litigation
The Cassava Sciences lawsuit update in the news: on October 16, 2026 the U.S. Court of Appeals for the Fifth Circuit vacated the order that certified the investor class and sent the case back to Texas, siding with the company's argument about “meme-stock dynamics.” A $31.25 million settlement is sitting in escrow but has no court approval. There is no claim form and no deadline. This is an investor case — it covers people who traded Cassava securities, not patients.
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What the Investors Say Happened
Cassava Sciences — renamed Filana Therapeutics in March 2026 — developed an experimental Alzheimer's drug called simufilam. The Cassava class action lawsuit alleges the company and its executives misrepresented how well simufilam worked, in violation of sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5.
According to the plaintiffs, the defendants amplified promising results while concealing facts that undermined the integrity of the research, and the stock fell as those facts came out. The first four suits, filed between August 27 and October 26, 2021, relied on citizen petitions to the FDA. A later Illinois suit relied on an October 12, 2023 article about alleged scientific misconduct by a collaborator at City University of New York. The defendants deny wrongdoing, and the settlement is expressly not an admission of fault.
Case details
The main case is In re Cassava Sciences, Inc. Securities Litigation, No. 1:21-cv-00751 in the U.S. District Court for the Western District of Texas (Austin). Four suits were consolidated on June 30, 2022; an Illinois case filed February 2, 2024 was transferred in on May 28, 2024.
The appeal is Bozorgi v. Cassava Sciences, Inc., Fifth Circuit No. 25-50855, decided by Judges Willett, Engelhardt and Douglas (opinion, PDF).
Separate matters: a 2024 Securities Class Action in the same court over the RETHINK-ALZ Phase 3 results; shareholder derivative suits in Texas, Delaware and Illinois; an anti-SLAPP suit filed in the Southern District of New York on August 6, 2024; and an SEC case that ended in a consent judgment on October 18, 2024.
Status: Class Vacated, Settlement Not Approved
The Fifth Circuit held that the district court misapplied the legal standard for Rule 23(b)(3) predominance, and said courts must weigh evidence of market inefficiency as well as efficiency. It rejected the plaintiffs' argument that the settlement made the appeal moot: a class settlement needs court approval, and approval “requires a certified class—whether previously certified or certified for settlement purposes.” The court expressly declined to say what its ruling means for the settlement.
The money exists. Cassava paid $31.25 million into escrow on July 23, 2026, under a stipulation filed June 18, 2026 with a motion for preliminary approval. The district court docket shows a Fifth Circuit order entered on October 20, 2026. What happens next — certifying a settlement class, renegotiating, or litigating — is up to the district court.
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There's no claim deadline yet. We'll email you when the case moves forward, like a settlement or payments going out.
Who Is in the Proposed Settlement Class
The settlement class is defined as everyone who bought or acquired Cassava common stock or call options, or sold Cassava put options, between September 14, 2020 and October 12, 2023, inclusive, subject to certain exclusions. That matches the period of the class the Fifth Circuit has now vacated.
The practical test is your brokerage records. Pull your trade confirmations and monthly statements for that window now, including for accounts you have since closed. If a settlement is approved, notice usually goes through brokers, so make sure your current address is on file.
Trades after October 12, 2023 fall outside this deal. The separate 2024 Securities Class Action proposes a class of purchasers between October 13, 2023 and March 25, 2025. Patients and trial participants are not part of either case.
What the Settlement Would Pay
Securities settlements are split by a plan of allocation based on when you bought and sold. No such plan or per-share figure has been published. Do not confuse this fund with the $40 million penalty Cassava agreed to pay the SEC on September 26, 2024 — that went to the government, not to investors through this case.
Cassava Lawsuit Timeline
August–October 2021 — Four Investor Suits
Four securities class actions are filed in the Western District of Texas between August 27 and October 26, 2021. They are consolidated on June 30, 2022.
August 12, 2025 — Class Certified
After an earlier denial without prejudice, the district court certifies the investor class. On October 21, 2025 the Fifth Circuit agrees to hear the defendants' appeal.
December 19, 2025 — $31.25 Million Term Sheet
Cassava and one of its officers accept a mediator's recommendation to pay $31.25 million. Two other defendants, Remi Barbier and Lindsay Burns, did not sign the term sheet but would still be released upon final approval.
June 18, 2026 — Settlement Filed
The parties file a stipulation of settlement and plaintiffs ask for preliminary approval. On July 23, 2026 the company pays the money into escrow.
October 16, 2026 — Class Certification Vacated
The Fifth Circuit vacates the class order and remands, after oral argument on August 3, 2026. It declines to rule on the settlement's effect.
Now — Back Before the District Court
As of October 2026, there is no approved settlement, no claim form and no deadline. The district court must decide what comes next.
Three Things to Watch For
A widely reported $31.25 million figure with no approved claims process is exactly the gap imposters fill:
“Claim your Cassava settlement payout” pages
No administrator has been appointed and no claim form exists as of October 2026. A site asking for your brokerage login or Social Security number to “reserve your share” is not part of the case.
Pay-to-recover offers for SAVA or FLNA losses
Class members never pay a fee to receive settlement money. Callers or messages demanding an upfront “processing” or “tax” payment to release funds are a recovery scam.
Deadline ads aimed at the ruling
Law-firm ads with urgent “deadlines” usually refer to lead-plaintiff slots, not claims. You do not need to hire anyone to stay in a class; a real claim deadline will appear in a court-approved notice.
Cassava Lawsuit — Questions People Actually Ask
Short answers to the questions people ask most about this case.
What is the latest Cassava Sciences lawsuit update?
On October 16, 2026 the Fifth Circuit vacated the order certifying the investor class in No. 1:21-cv-00751 and sent the case back to the Western District of Texas. The $31.25 million settlement has not been approved.
Did the Fifth Circuit cancel the $31.25 million settlement?
No. It said it would not opine on the settlement's effect. But it also said a settlement needs a certified class, either the old one or one certified for settlement purposes, so the district court has to address that before any approval.
Did Cassava Sciences change its name?
Yes. Cassava Sciences announced its new name, Filana Therapeutics, Inc., on March 10, 2026, and began trading under the ticker FLNA on March 11, 2026. The lawsuits still carry the Cassava name.
How much money will I get from a class action lawsuit?
For this Cassava Sciences class action lawsuit, nobody knows yet. The fund would be $31.25 million before fees and costs, divided under a plan of allocation that has not been published. For a general estimate, see our settlement payout calculator.
Who is covered by the Cassava class action?
People who bought or acquired Cassava common stock or call options, or sold put options, between September 14, 2020 and October 12, 2023, subject to exclusions. Later buyers may fall under the separate 2024 Securities Class Action.
What does “meme stock” have to do with it?
The defendants argued that during the class period, retail traders on social media drove the price in ways untethered from fundamentals, so investors could not rely on the price as a reflection of public information. The Fifth Circuit said the lower court had to weigh that inefficiency evidence; it did not decide whether the market was efficient.
Is this the same as the SEC case against Cassava?
No. The SEC case ended with a consent judgment on October 18, 2024; Cassava agreed to a $40 million penalty without admitting or denying the allegations. The investor class action is a separate private lawsuit.
Do I have to do anything right now?
No. There is no claim form and no deadline as of October 2026. Save your trade records for the class period and watch for a court-approved notice; there is currently no certified class, so what happens to your status as a class member depends on what the district court does next.
About This Information
Editorially Reviewed — Content reviewed for accuracy using published legal research, government data, and verified court records. See our methodology. Reviewed by Leonard Goldberg, Editor · Last updated - $236 billion in real payouts analyzed · See what we found
This page is for general information only and is not legal advice. Lawsuit status, eligibility, and compensation can change. Settlement Insight is not a law firm and does not represent any party. Consult a licensed attorney about your specific situation.
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