LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces an investigation on behalf of Galena Biopharma, Inc. (“Galena” or the “Company”) (NASDAQ: GALE) investors concerning the Company and its officers’ possible violations of federal securities laws.
On November 9, 2015 Galena disclosed plans to “divest its commercial business,” which included the Company’s breakthrough cancer pain drug, Abstral. On this news, the price of Galena common stock fell $0.19 per share, or 11%, to close at $1.53 per share on November 10, 2015, on unusually heavy trading volume, thereby injuring investors.
Thereafter, on March 10, 2016, the Company disclosed that “[a] federal investigation of two of the high-prescribing physicians for Abstral has resulted in the criminal prosecution of the two physicians for alleged violations of the federal False Claims Act and other federal statutes,” and that the Company had received a trial subpoena for documents in connection with that investigation. The Company further disclosed that “other governmental agencies may be investigating our Abstral promotion practices,” and that “on December 16, 2015, we received a subpoena issued by the U.S. Attorney’s Office in District of New Jersey requesting the production of a broad range of documents pertaining to our marketing and promotional practices for Abstral.” On this news, the price of Galena common stock fell 3.3%.
Finally, on January 31, 2017, the Company announced the resignation of Mark W. Schwartz, who was with the Company at the time of the above disclosures, from his positions as President, Chief Executive Officer, and a member of the Board of Directors. On this news, the price of Galena common stock fell 22.4%, on unusually heavy trading volume, thereby further injuring investors.
If you purchased Galena securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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