Cassava Announces Closure of U.S. Department of Justice Investigation

Biotechnology company focused on central nervous system disorders sees resolution of DOJ and SEC probes.

Published on Feb. 24, 2026

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Cassava Sciences, Inc., a biotechnology company developing novel treatments for central nervous system disorders, announced that the U.S. Department of Justice Fraud Section has closed its inquiry into the company regarding allegations of research misconduct. The company also previously reached a settlement with the U.S. Securities and Exchange Commission over negligence-based disclosure charges in 2024.

Why it matters

The closure of the DOJ and SEC investigations clears the way for Cassava to continue focusing on the development of its novel treatments, including for tuberous sclerosis complex-related epilepsy, without the distraction of ongoing legal and regulatory scrutiny.

The details

Cassava Sciences cooperated fully with both the DOJ and SEC investigations, which have now been resolved. The company paid a monetary penalty to the SEC in 2024 without admitting or denying the allegations. Cassava's President and CEO, Richard J. Barry, stated that the company remains dedicated to maintaining stakeholder trust as it moves forward with its drug development efforts.

  • The DOJ inquiry was closed in February 2026.
  • Cassava reached a settlement with the SEC in September 2024.

The players

Cassava Sciences, Inc.

A biotechnology company focused on developing novel, investigational treatments for central nervous system disorders such as Tuberous Sclerosis Complex (TSC)-related epilepsy.

U.S. Department of Justice Fraud Section

The division of the DOJ that conducted an inquiry into Cassava Sciences regarding allegations of research misconduct.

U.S. Securities and Exchange Commission

The federal agency that reached a settlement with Cassava Sciences in 2024 over negligence-based disclosure charges.

Richard J. Barry

The President and Chief Executive Officer of Cassava Sciences.

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What they’re saying

“We welcome the resolution of these investigations and remain dedicated to maintaining the trust of all our stakeholders. As we move forward, we will continue to focus our efforts on developing a novel treatment for TSC-related epilepsy.”

— Richard J. Barry, President and Chief Executive Officer (Cassava Sciences)

The takeaway

The closure of the DOJ and SEC investigations allows Cassava Sciences to move forward without the distraction of ongoing legal and regulatory scrutiny, enabling the company to focus its efforts on developing novel treatments for central nervous system disorders such as Tuberous Sclerosis Complex-related epilepsy.