NEW YORK, Feb. 22, 2017 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Galena Biopharma, Inc. ("Galena" or the "Company") (NASDAQ: GALE).
A class action complaint has been filed in the United States District Court for the District of New Jersey against Galena and certain officers of the Company on behalf of persons or entities that acquired Galena's securities between August 11, 2014 and January 31, 2017, inclusive (the "Class") alleging violations of the Securities Exchange Act of 1934.
The complaint alleges that on December 22, 2015, Galena filed a Form 8-K with the Securities and Exchange Commission ("SEC") disclosing that Galena received a subpoena from the U.S. Attorney's Office for the District of New Jersey that requested "a broad range of documents pertaining to marketing and promotional practices related to the product ABSTRAL® (fentanyl) Sublingual Tablets."
The complaint also alleges that on March 10, 2016, the Company disclosed in its 2015 Form 10-K filing that "[a] federal investigation of two of the high-prescribing physicians for Abstral has resulted in the criminal prosecution of the two physicians for alleged violations of the federal False Claims Act and other federal statutes." Galena also disclosed that it had "received a trial subpoena for documents in connection with that investigation" and was "in contact with the U.S. Attorney's Office for the Southern District of Alabama, which is handling the criminal trial." Additionally, the Company noted that "the FDA and other governmental agencies may be investigating [the Company's] promotion practices."
Finally, the complaint alleges that on January 31, 2017, the Company announced the resignation of Mark W. Schwartz, Galena's President, Chief Executive Officer, and a member of the Board of Directors, effective that day. Following this news, shares of Galena fell $0.53 per share over two trading days, more than 32%, to close at $1.12 per share on February 2, 2017.
The complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements and/or failed to disclose that: (1) the Company's sales of Abstral were based on unsustainable sales and marketing practices; (2) such sales and marketing practices could subject the Company to a criminal investigation; and (3) as a result, defendants' statements about the Company's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you are a member of the proposed Class, you may move the court no later than April 14, 2017 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
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SOURCE Kaplan Fox & Kilsheimer LLP