NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Puma Biotechnology, Inc. (NYSE: PBYI).
On July 25, 2017, the Court again denied a motion to dismiss in a shareholder class action against Puma, CEO, President, and Chairman Alan H. Auerbach, and other executives. The amended complaint alleged that, in violation of the federal securities laws, Puma and the other defendants failed to inform shareholders that additional studies were needed regarding its breast cancer drug neratinib which would delay filing the NDA into the first quarter of 2016, that Puma made false and misleading statements concerning the results for its phase 3 trial and that company executives “actively sought to have Puma acquired by a larger pharmaceutical company” before results were released for personal gain.
In denying Puma’s motion to dismiss the securities fraud class action, the court stated that “[the] additional allegations concerning Defendants fraudulent intent serve to buttress…the already adequate allegations of scienter.” The court further held that “[d]efendants shouldn’t benefit from safe harbor by simply saying they “anticipated” success [with the results] when, in fact, they had a reasonable belief that defeat was just around the corner.”
KSF’s investigation is focusing on whether Puma’s officers and/or directors breached their fiduciary duties to Puma’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Puma shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (firstname.lastname@example.org).
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities, antitrust and consumer class actions, along with merger & acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.