SAN DIEGO and LAKE OSWEGO, Ore., March 12, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Galena Biopharma, Inc. (NASDAQ: GALE) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of Oregon. The complaint alleges that the company and certain of its officers and directors violated the Securities and Exchange Act of 1934 between November 6, 2013 and February 14, 2014 (the "Class Period"). Galena is a biopharmaceutical company focusing on the development of oncology treatments.
Galena Is Accused of Engaging in a Misleading Brand Awareness Campaign
According to the complaint, shares of Galena fell $0.85 per share, or 16%, to close at $4.34 on February 12, 2014, following the publication of an article on TheStreet.com claiming that Galena engaged in a misleading brand awareness campaign. Specifically, the complaint charges that an investor relations firm, the DreamTeamGroup, was hired by Galena to tout the company and promote its stock. The complaint charges that the DreamTeamGroup misled investors by publishing favorable articles about the company under multiple aliases and failing to mention its marketing relationship with Galena. Then, on February 14, 2014, Galena's stock fell an additional $0.63 per share, or 14%, to close at $3.73 following the issuance of a letter by Galena's President and CEO, Mark J. Ahn, acknowledging that Galena had hired the DreamTeamGroup and that company insiders divested shares of the company during the previous month.
The complaint further alleges that Galena's stock price traded at artificially high prices because of this misleading campaign, and that CEO Ahn sold $3.8 million dollars of Galena shares while the stock was artificially inflated.
Galena Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
If you invested in Galena and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/galena-biopharma
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP