In the latest D&O lawsuit based on allegations related to the COVID-19 outbreak, a plaintiff shareholder has filed derivative lawsuit against the board of a vaccine developer, Vaxart, claiming that corporate insiders and the company's largest investor profited when the company falsely claimed that it was part of the federal government's accelerated program for the development of a COVID-19 vaccine. The complaint in the lawsuit, which alleges that the defendants violated their fiduciary duties and federal securities laws regarding proxy disclosures, can be found here. Background Vaxart is a clinical-stage biotechnology company focused on the development of oral vaccines. Until recently, Armistice Capital, a hedge fund, was Vaxart's largest investor. Armistice's founder and one of its managing directors sit on Vaxart's board. At the beginning of 2020, Armistice owned shares and warrants representing about a 30% ownership stake in the company.