SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Johnson & Weaver, LLP announced today that it filed a class action lawsuit in the United States District Court for the District of Oregon on behalf of purchasers of Galena Biopharma, Inc. (NASDAQ: GALE) (“Galena”) (GALE) common stock during the period between November 6, 2013 and February 14, 2014 (the “Class Period”).
The complaint charges Galena and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public. As a result of defendants’ false statements, the complaint alleges, Galena’s stock traded at artificially inflated prices during the Class Period, reaching a high of $7.48 per share on January 16, 2014. While Galena’s stock price was artificially inflated, its Chief Executive Officer was able to sell $3.8 million worth of his Galena stock.
On February 12, 2014, Adam Feuerstein published an article on TheStreet.com claiming Galena was engaging in a misleading brand awareness campaign aimed at boosting its stock price. Additionally, the article represented that Galena paid investor relations firm The DreamTeam Group (“DreamTeam”) to publish articles under aliases promoting the Company’s stock without disclosing who paid for them. On this news, Galena’s stock price dropped $0.85 per share to close at $4.34 per share on February 12, 2014, a one-day decline of 16% on volume of nearly 24 million shares. Then, on February 14, 2014, Galena issued a letter to its shareholders acknowledging that the Company had engaged DreamTeam. On this news, Galena’s stock price dropped another $0.63 per share to close at $3.73 per share on February 14, 2014, a one-day decline of 14% on volume of nearly 41 million shares, and a decline of 50% from the stock’s Class Period high.
If you wish to serve as a lead plaintiff, you must move the Court no later than May 5, 2014. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-230-0063 Ext. 118. More information concerning this action is also available at www.johnsonandweaver.com. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm with offices in New York, New York and San Diego, California. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.