Novavax has agreed to pay $47 million to resolve a securities class action over its COVID-19 vaccination claims.
Sothinathan Sinnathurai filed the lawsuit in the United States District Court for the District of Maryland in 2021, alleging Novavax made false and misleading statements about its ability to manufacture its then-prototype vaccine on a commercial scale and obtain regulatory approval for the prototype vaccine.
Novavax filed a request to dismiss the case in April 2022. Toward the end of the year, the motion was rejected.
The parties have finally reached an agreement on a binding settlement to completely address the remaining issues. The $47 million will be placed in a settlement fund. Novavax will pay the money via its directors and officers’ liability insurance.