NEW YORK, March 10, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC, notifies investors of class action against CTI BioPharma Corp. ("CTI" or the "Company") (NASDAQ: CTIC). The class action has been filed in the United States District Court, Western District of Washington on behalf of a class consisting of all persons or entities who purchased CTI BioPharma securities: (1) pursuant and/or traceable to the Company's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the Company's public offering on or about September 24, 2015 (the "Offering"); and/or (2) between March 4, 2014 and February 9, 2016, inclusive (the "Class Period").
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
CTI BioPharma is a biopharmaceutical company which researches and develops clinical treatment and drugs for blood-related cancers in the United States and internationally. One of CTI's most advanced pipeline products was pacritinib, a treatment for myleofibrosis.
On September 24, 2015, CTI BioPharma released its Initial Public Offering of 10,000,000 shares, priced at $1.57 per share.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about CTI's business, operations, and projections. Particularly, Defendants made false and/or misleading statements and/or failed to disclose: (1) that pacritinib was credited as a potential cause in the death and injuries of several patients; (2) that the CTI's clinical trials showed dangers of using pacritinib; (3) that the CTI's new drug application for pacritinib would likely be removed; (4) that, as such, CTI's future proceeds were reduced; (5) that CTI lacked sufficient internal controls; and (6) that, as a result of the foregoing, CTI's financial statements and Defendants' statements about CTI's business, operations, and projections, were materially false and misleading at all relevant times.
On February 8, 2016, pre-market, CTI revealed that it had been notified by the U.S. Food and Drug Administration (FDA) that the FDA had placed a partial hold on clinical studies of CTI's main product, pacritinib. The FDA has recommended that CTI adjust its protocols for randomized studies to disallow crossover to pacritinib, provide certain notifications, revise certain statements in the investigator's brochure and informed consent documents and other actions. Under the FDA's clinical hold, the CTI, "may not enroll new patients or start pacritinib as an initial or crossover treatment, and (ii) patients on pacritinib not deriving benefit after 30-weeks of pacritinib treatment should stop pacritinib." CTI also released that, "[i]n its written notification, the FDA cited the reasons for the partial clinical hold were that it identified the following fatal and life-threatening safety issues in pacritinib-treated patients: heart failure, hemorrhage including intracranial hemorrhage, and arrhythmias including sudden death, and the FDA has also noted excess mortality in pacritinib-treated patients compared to the control arm in the PERSIST-1 clinical trial evaluating pacritinib."
Following this news, CTI stock fell $0.68, or over 60%, to close at just $0.44 per share during on February 8, 2016, on usually heavy volume.
The next day, on February 9, 2016, CTI BioPharma announced that the FDA had placed a full clinical hold on pacritinib. Following this news, CTI stock fell over 40% during intraday trading on February 10, 2016, on unusually heavy volume of over 15 million shares.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint and join the action, visit the firm's website: http://www.bgandg.com/#!ctic/q62aa. To discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email firstname.lastname@example.org. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in CTI BioPharma you have until April 11, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | email@example.com
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