The circumstances surrounding Cassava Sciences read like a nonfiction scientific thriller: a little-known biopharmaceutical company, a groundbreaking new drug candidate for Alzheimer’s disease, and two short sellers—one with ties to Big Pharma—personally vested in driving the company’s stock price down.

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Jaclyn Jaeger is a freelance contributor to Compliance Week after working for the company for 15 years. She writes on a wide variety of topics, including ethics and compliance, risk management, legal,...