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Covid-19 vaccine company under federal investigation after Covid-19 vaccine company under federal investigation over allegedly misrepresenting its role in government program Operation Warp Speed misrepresenting its role in government program Operation Warp Speed

October 18, 2020. Summarized by summa-bot.

BRAZIL - 2020/03/31: In this photo illustration Vaxart logo is seen displayed on a smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)

California biotech company Vaxart, which is working on a Covid-19 vaccine, is under federal investigation and is being sued by a number of investors for allegedly exaggerating its involvement in the US government's Operation Warp Speed program for developing Covid-19 vaccines and treatments.

New York (CNN Business)California biotech company Vaxart, which is working on a Covid-19 vaccine, is under federal investigation and is being sued by a number of investors for allegedly exaggerating its involvement in the US government's Operation Warp Speed program for developing Covid-19 vaccines and treatments.

In June, Vaxart (VXRT) issued a press release that said "Vaxart's Covid-19 Vaccine Selected for the US Government's Operation Warp Speed. " The news helped propel Vaxart's stock price to nearly $17, up from approximately $3, and hedge fund Armistice Capital, which partly controlled Vaxart, sold shares for a profit of more than $200 million, according to its SEC filings.

Vaxart has not been chosen by Operation Warp Speed to receive research funding, but instead had limited involvement, HHS told the New York Times in July.

In a statement to CNN Business Saturday, the company said, "The Vaxart non-human primate challenge study was organized and funded by Operation Warp Speed, as stated in the June 26, 2020 company press release.

In its October SEC filing, Vaxart wrote that it has provided documents called for by the subpoena to demonstrate its role in Operation Warp Speed.

Vaxart and its board have been sued several times by shareholders who accuse the company of allegedly inflating Vaxart's stock price by misrepresenting its role in Operation Warp Speed.

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