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(RTTNews) - Cassava Sciences (SAVA) has sinked more than 30% after a federal grand jury in the District of Maryland returned an indictment yesterday charging CUNY School of Medicine Professor Hoau-Yan Wang of about $16 million.

SAVA closed Friday trading at $12.35, down 34.83%. In the after-hours trading the stock gained $0.90 or 7.28%.

The charges against Wang for falsifying data are regarding Cassava's Alzheimer's drug, simufilam, that Wang used to apply for NIH grants. Wang is charged with one count of major fraud against the United States, two counts of wire fraud, and one count of false statements.

Wang and his former public university medical school have had no involvement in the Company's Phase 3 clinical trials of simufilam, Cassava stated.

"From approximately May 2015 through approximately April 2023, Wang allegedly engaged in a scheme to fabricate and falsify scientific data in grant applications made to the NIH on behalf of himself and the biopharmaceutical company," Justice Department said.

The $16 million in grants was dispersed between 2017 and 2021, part of which funded Wang's laboratory work and salary, DoJ added.

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