Akin Secures Significant Victory for Armistice Capital in Securities Class Action Jury Trial

(Washington, D.C. and New York) – Akin announced today that it has achieved a significant victory on behalf of Armistice Capital in the U.S. District Court for the Northern District of California, in the case In re: Vaxart, Inc. Securities Litigation.

On April 28, 2026, following a three-week trial, a California federal jury issued a verdict exonerating Akin’s clients Armistice and two of its executives on securities class action claims involving alleged securities fraud and insider trading. In substance, the claims alleged that the defendants had pumped and dumped in excess of $250 million worth of Vaxart stock during the COVID-19 pandemic through, among other things, the issuance of false press releases regarding the issuer’s vaccine research.

Specifically, the investors claimed that hedge fund Armistice Capital, LLC, Armistice Capital Master Fund Ltd., Armistice founder Steven Boyd and Armistice’s managing director Dr. Keith Maher, manipulated the market by scheming to cause Vaxart to issue false and misleading press releases regarding its COVID-19 vaccine development efforts so that they could then sell Armistice’s Vaxart shares at artificially inflated prices. Plaintiffs also claimed Boyd and Armistice had material nonpublic information about Vaxart when they sold their shares.  In securing this victory, the Akin defense team successfully argued that the press releases were in fact accurate and, in all events, Armistice and Mr. Boyd and Dr. Maher had nothing to do with drafting, editing or approving the press releases. 

“After six years of repeated accusations, it took the jury less than four hours to reach a verdict vindicating our clients. The jury verdict confirms that Armistice did not participate in the conduct Plaintiffs alleged," said Akin white collar defense & government investigations co-head Chuck Connolly. “The result is particularly notable because securities class actions rarely proceed to trial. Even more unusual, this case reached the jury after the issuer has settled, leaving only the investment fund and its principals to defend the claims. Obtaining a complete defense victory under these circumstances is exceptionally rare.”

The Akin team included white collar defense & government investigations co-head Chuck Connolly, funds litigation partner Kate Shapiro, environmental partner Stacey Mitchell, funds litigation partner Douglas Rappaport, counsel Josh Rubin and David Giller and associates Lillian Rand and Harris Stephens.

Akin is a leading international law firm with more than 1,000 lawyers in offices throughout the United States, Europe, Asia and the Middle East. 

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