Key Takeaways
- • Akin secured a complete defense verdict on April 28, 2026, exonerating Armistice Capital, founder Steven Boyd, and managing director Dr. Keith Maher in a securities class action trial involving alleged pump-and-dump manipulation of over $250 million in Vaxart stock during the COVID-19 pandemic.
- • The jury deliberated less than four hours before finding that Armistice and its principals had no involvement in drafting, editing, or approving allegedly false press releases about Vaxart's vaccine development, and that the press releases were in fact accurate.
- • The three-week trial in U.S. District Court for the Northern District of California was exceptionally rare for a securities class action, particularly given that Vaxart itself had already settled, leaving only the hedge fund and its executives as remaining defendants.
- • Chuck Connolly, Akin's white collar defense co-head, characterized the verdict as "particularly notable" given that securities class actions rarely proceed to trial and obtaining complete defense victories under these circumstances is "exceptionally rare."
- • The case centered on plaintiff allegations that Armistice had material nonpublic information about Vaxart when executing sales and orchestrated false disclosures to inflate share prices—claims the jury rejected.
Summary
Akin Gump Strauss Hauer & Feld achieved a significant securities litigation victory on behalf of Armistice Capital on April 28, 2026, when a California federal jury issued a complete defense verdict in *In re: Vaxart, Inc. Securities Litigation* following a three-week jury trial in the U.S. District Court for the Northern District of California. The jury exonerated Armistice Capital LLC, Armistice Capital Master Fund Ltd., hedge fund founder Steven Boyd, and managing director Dr. Keith Maher on all securities class action claims involving alleged securities fraud and insider trading.
The underlying litigation centered on plaintiff allegations that Armistice and its principals engaged in a pump-and-dump scheme involving over $250 million in Vaxart stock during the COVID-19 pandemic. Specifically, investors alleged that the defendants manipulated the market by orchestrating false and misleading press releases regarding Vaxart's COVID-19 vaccine development efforts, enabling them to sell their shares at artificially inflated prices. Plaintiffs further asserted that Boyd and Armistice possessed material nonpublic information about Vaxart at the time of the stock sales. The Akin defense team successfully countered these allegations by establishing that the press releases at issue were factually accurate and, critically, that Armistice and its principals played no role in drafting, editing, or approving the disclosures.
The jury's swift deliberation—less than four hours to reach a complete defense verdict after six years of litigation—underscores the strength of Akin's defense presentation. According to Chuck Connolly, co-head of Akin's white collar defense and government investigations practice, the result is "particularly notable" given the rarity with which securities class actions proceed to trial. The circumstances were further unusual because Vaxart itself had already settled the litigation, leaving only the investment fund and its principals to defend the remaining claims. Obtaining a complete defense victory under such circumstances represents an exceptionally uncommon outcome in securities litigation.
The Akin defense team included Connolly and funds litigation partner Kate Shapiro as lead counsel, alongside environmental partner Stacey Mitchell, funds litigation partner Douglas Rappaport, counsel Josh Rubin and David Giller, and associates Lillian Rand and Harris Stephens. The victory represents a significant vindication for Armistice Capital after an extended litigation period and establishes important precedent regarding the evidentiary standards required to sustain pump-and-dump allegations against sophisticated institutional investors in pandemic-era securities cases.
The underlying litigation centered on plaintiff allegations that Armistice and its principals engaged in a pump-and-dump scheme involving over $250 million in Vaxart stock during the COVID-19 pandemic. Specifically, investors alleged that the defendants manipulated the market by orchestrating false and misleading press releases regarding Vaxart's COVID-19 vaccine development efforts, enabling them to sell their shares at artificially inflated prices. Plaintiffs further asserted that Boyd and Armistice possessed material nonpublic information about Vaxart at the time of the stock sales. The Akin defense team successfully countered these allegations by establishing that the press releases at issue were factually accurate and, critically, that Armistice and its principals played no role in drafting, editing, or approving the disclosures.
The jury's swift deliberation—less than four hours to reach a complete defense verdict after six years of litigation—underscores the strength of Akin's defense presentation. According to Chuck Connolly, co-head of Akin's white collar defense and government investigations practice, the result is "particularly notable" given the rarity with which securities class actions proceed to trial. The circumstances were further unusual because Vaxart itself had already settled the litigation, leaving only the investment fund and its principals to defend the remaining claims. Obtaining a complete defense victory under such circumstances represents an exceptionally uncommon outcome in securities litigation.
The Akin defense team included Connolly and funds litigation partner Kate Shapiro as lead counsel, alongside environmental partner Stacey Mitchell, funds litigation partner Douglas Rappaport, counsel Josh Rubin and David Giller, and associates Lillian Rand and Harris Stephens. The victory represents a significant vindication for Armistice Capital after an extended litigation period and establishes important precedent regarding the evidentiary standards required to sustain pump-and-dump allegations against sophisticated institutional investors in pandemic-era securities cases.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.