California biotech company Vaxart is under federal investigation and is being sued by a number of investors.<br />According to CNN, Vaxart was served with a grand jury subpoena in July from the US District Court for the Northern District of California.<br />It's under fire for exaggerating its involvement in the US government's Operation Warp Speed program for developing COVID-19 vaccines and treatments.<br />Vaxart issued a June press release saying 'Vaxart's Covid-19 Vaccine Selected for the US Government's Operation Warp Speed.'<br />The news pumped Vaxart's stock price from $3 to $17. Hedge fund Armistice Capital, which partly controlled Vaxart, sold its shares, profiting more than $200m.<br />A few weeks before it announced its supposed inclusion in the Operation Warp Speed program, Vaxart granted amendments to its warrants agreements.<br />That allowed Armistice to sell almost all of their stock, which they did once the stock price skyrocketed.<br />In July, the HHS said it had neither entered into a funding agreement nor negotiations with Vaxart.
