Shares of Cassava Sciences Inc. dropped more than 10% in the extended session Thursday after announcing a settlement with U.S. securities regulators, who had charged the pharma company and two former executives for “misleading claims” about an Alzheimer’s clinical trial.

WASHINGTON (Reuters) -Shares of Cassava Sciences fell 10% in post-market trading on Thursday after the U.S. Securities and Exchange Commission charged the biopharmaceutical company and two former executives for misleading claims about the results of Alzheimer's clinical trials.

Cassava Sciences and its executives face a $40 million SEC settlement over manipulated data in an Alzheimer's drug trial, misleading investors with false claims of cognitive improvement and selective data reporting.