LOS ANGELES--(BUSINESS WIRE)--Please replace the release with the following corrected version due to multiple revisions.
The corrected release reads:
GLANCY PRONGAY & MURRAY LLP FILES SECURITIES CLASS ACTION LAWSUIT AGAINST GALENA BIOPHARMA, INC.
Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the District of New Jersey on behalf of a class (the “Class”) consisting of persons and entities that acquired Galena Biopharma, Inc. (“Galena” or the “Company”) (NASDAQ: GALE) securities between August 11, 2014 and January 31, 2017, inclusive (the “Class Period”).
If you are a member of the Class described above, you may move the Court no later than April 14, 2017, to serve as lead plaintiff. Please contact Lesley Portnoy at 888-773-9224 or 310-201-9150, or at email@example.com to discuss this matter.
The filed complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that the Company violated various statutes in connection with its sales of Abstral; (2) that, as such, the Company was exposed to civil and criminal liability; and (3) that, as a result of the foregoing, Defendants’ statements about Galena’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
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, 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%, thereby further injuring investors.
If you purchased shares of Galena during the Class Period you may move the Court no later than April 14, 2017 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by e-mail to firstname.lastname@example.org, or visit our website at www.glancylaw.com.
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