The Securities & Exchange Commission (SEC) has accused Cassava's founder and former chief executive Remi Barbier and former head of neuroscience Dr Lindsay Burns of misleading investors by announcing that the company’s small-molecule therapeutic simufilam significantly improved patient cognition in the phase 2b study.

Shares of Cassava Sciences Inc. dropped more than 10% in the extended session Thursday after announcing a settlement with U.S. securities regulators, who had charged the pharma company and two former executives for “misleading claims” about an Alzheimer’s clinical trial.

WASHINGTON (Reuters) -Shares of Cassava Sciences 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.