WASHINGTON--(BUSINESS WIRE)--Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Lion Biotechnologies, Inc. (“Lion Biotechnologies” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the Northern District of California by another law firm on behalf of purchasers of the common stock of Lion Biotechnologies (NASDAQ: LBIO) between November 14, 2013 and April 10, 2017, inclusive (the “Class Period”).
The complaint alleges that Lion Biotechnologies and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) Lion Biotechnologies, through Defendant and former CEO Manish Singh, engaged in a scheme to mislead investors by commissioning internet publications and widely distributed emails promoting Lion Biotechnologies to potential investors that purported to be independent from the Company when, in fact, they were paid promotions; (2) Defendant Singh engaged a notorious stock promotion firm, Lidingo Holdings, to pay writers to publish articles about Lion Biotechnologies on investment websites as well as to coordinate the distribution of articles to thousands of electronic mailboxes; (3) Defendant Singh actively participated in Lidingo’s promotional work for Lion Biotechnologies and understood that Lidingo was using writers who would not disclose that Lion Biotechnologies was indirectly compensating them for their publications; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
The claims in this case followed a settlement with the U.S. Securities and Exchange Commission stemming from allegations that Lion Biotechnologies and Singh engaged in illegal stock promotion. On April 10, 2017, the SEC announced it charged 27 firms and individuals with fraudulent stock promotion including Lion Biotechnologies and its former CEO Singh. Lion Biotechnologies agreed to a civil penalty of $100,000. Singh agreed to disgorgement of $1.75 million, interest of $151,676.94, a civil penalty of $1 million, and a 5-year bar from serving as an officer or director and from participating in any penny stock offering. The price of Lion Biotechnologies stock fell from $6.55 on April 7, 2017 to $6.35 on April 10, 2017, and again to $6.20 on April 11, 2017.
Cohen Milstein encourages all investors who purchased Lion Biotechnologies common stock between November 14, 2013 and April 10, 2017, or former employees with information concerning this matter to contact the firm.
If you are a Lion Biotechnologies shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than June 13, 2017 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total billions of dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: email@example.com; firstname.lastname@example.org