NEW YORK--(BUSINESS WIRE)--The Rosen Law Firm announces that it is investigating potential securities fraud claims against Galena Biopharma, Inc. (NASDAQ:GALE) resulting from allegations that GALE may have paid outsiders to pump its stock using false and misleading articles while insiders dumped their shares.
In July 2013, GALE entered into a contract with investor relations firm The DreamTeam Group (“DT”) to tout its stock for 240 days. DT itself then published a variety of articles, many if not all of which misleadingly omitted to disclose that DT was paid by GALE to promote it. Several of the articles were also falsely attributed to various third parties.
On January 26, 2014, Seeking Alpha, where some of DT’s articles were published, removed five DT-authored articles. Seeking Alpha claimed the articles violated its terms of use because they claimed that they were authored by three different anonymous authors, though they were in fact all written by DT. Then, on February 12, 2014, journalist Adam Feuerstein published an article on TheStreet.com revealing that GALE had paid for DT’s promotion. GALE’s stock price fell from $5.19 to $4.34, damaging investors. Then, on February 14, 2014, GALE issued a letter to its shareholders, in which it admitted that it had paid DT to promote it.
But in January 2014, before Mr. Feuerstein revealed that positive articles about GALE had been written in a paid promotional campaign, GALE CEO Mark J. Ahn sold net $2.79 million of GALE stock. Steven Kriegsman, a GALE Director who is also CEO of CytRX, another DT client, sold net $2.49 million of shares in January. Other insiders collectively sold net $4.7 million of shares.
The Rosen Law Firm is investigating a securities class action lawsuit on behalf of GALE investors. If you purchased GALE stock before February 12, 2014, please visit the website at http://rosenlegal.com for more information. You may also contact Jonathan Horne, Esq., or Phillip Kim, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at jhorne@rosenlegal.com or pkim@rosenlegal.com.
The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.
Attorney Advertising. Prior results do not guarantee a similar outcome.
