BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming April 4, 2017 deadline to file a lead plaintiff motion in the class action filed on behalf of a class (the “Class”) of investors who purchased Stemline Therapeutics, Inc. (“Stemline” or the “Company”) (NASDAQ: STML) securities between January 6, 2017 and February 1, 2017, inclusive (the “Class Period”). Stemline investors have until April 4, 2017 to file a lead plaintiff motion.
The Complaint filed in this lawsuit alleges that throughout the Class Period Defendants made false and/or misleading statements regarding the safety of its SL-401 drug candidate, including by failing to reveal that a cancer patient in a Stemline clinical trial tied to SL-401 died from a severe side effect on January 18, 2017; and as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On January 19, 2017, Stemline announced a proposed secondary offering of the Company's common stock. And, on January 20, 2017, Stemline announced the pricing of the offering of 4.5 million shares of the Company's common stock at $10.00 per share, with projected gross proceeds of $45 million to Stemline.
Then, on February 2, 2017, before the market opened, Adam Feuerstein published an article on TheStreet reporting that on January 18, 2017, a cancer patient in a clinical trial of SL-401 for the treatment of blastic plasmacytoid dendritic cell neoplasm ("BPDCN") had died from a severe side effect tied to SL-401. The Company admitted receiving the report regarding the patient death on January 18, 2017, but continued with its stock offering on January 19, 2017, without disclosing the patient death to investors. On this news, Stemline shares fell $4.15 per share, to close at $5.60 per share on February 2, 2017, a decline of over 40% on unusually high volume.
If you purchased Stemline shares, you may move the Court no later than April 4, 2017 to request appointment 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at http://www.howardsmithlaw.com.
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