BERKELEY, Calif.--(BUSINESS WIRE)--Hagens Berman Sobol Shapiro LLP reminds investors of the May 5, 2014, deadline to file for lead plaintiff in a securities fraud case against Galena Biopharma, Inc. (NASDAQ: GALE) (“Galena” or “the Company”). Investors who bought Galena securities between Nov. 6, 2013, and Feb. 14, 2014 (the “Class Period”), can contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000, emailing Galena@hbsslaw.com or by visiting http://hb-securities.com/investigations/Galena.
The complaint filed in the U.S. District Court for the District of Oregon alleges that the company violated federal securities laws when it paid DreamTeam to write misleading articles under aliases without disclosing payment for the articles or any affiliation with the company. Following the news of Galena’s alleged false, stock-touting statements, the complaint alleges that the company’s stock traded at artificially inflated prices during the class period, reaching a high of $7.48 per share on Jan. 16, 2014. During this time, its CEO sold $3.8 million worth of Galena stock.
On Feb. 12, 2014, a senior columnist at TheStreet.com published an article claiming Galena was engaging in a misleading campaign to boost the company’s stock price. Following the publication of the article, titled “Galena Biopharma Pays For Stock-Touting Campaign While Insiders Cash Out Millions,” Galena’s stock price dropped $0.85 per share to close at $4.34 per share on Feb. 12, 2014, a decline of 16 percent on volume of nearly 24 million shares, according to the complaint.
In response to the article from TheStreet.com, Galena published a statement to shareholders on Feb. 14, 2014, acknowledging that the company had engaged DreamTeam. Following this news, Galena’s stock price dropped another $0.63 per share to close at $3.73 per share on Feb. 14, 2014, a decline of 14 percent on volume of nearly 41 million shares, and a decline of 50 percent from the stock’s class period high, the complaint states. Galena’s stock continues to trade below previous figures, closing at $2.59 on March 25, 2014.
More recently, on March 17, 2014, Galena revealed that the company learned in February that the SEC is investigating “certain matters related to our company and an outside investor-relations firm that we retained in 2013.” Galena's shares dropped more than nine percent in after-hours trading following the company’s announcement of the SEC investigation on March 17, 2014.
“Hagens Berman believes Galena’s self-aggrandizing stock promotion scheme robbed stakeholders of their investments while defendants profited greatly from these business dealings,” said Mr. Kathrein. “We intend to fully pursue any leads that will help us get to the bottom of the company’s relationship with The DreamTeam Group.”
The deadline to file for lead plaintiff in the securities fraud class action is May 5, 2014.
Persons with non-public information regarding Galena should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email one of the links above.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hb-securities.com. Read the Firm’s Securities Newsletter at http://www.hb-securities.com/newsletter. The firm’s blog is located at www.meaningfuldisclosure.com.