Stemline, a clinical-stage biopharmaceutical company, focuses on the discovery, acquisition, development and commercialization of proprietary oncology therapeutics in the United States. The Company is developing "SL-401," a targeted therapy directed to the interleukin-3 receptor (IL-3R), which is in Phase II clinical trial for advanced hematologic cancers.
On January 20, 2017, Stemline announced the pricing of a public offering of common stock. Specifically, the Company announced that it had priced an underwritten public offering of 4.5 million shares of Stemline common stock at a price of $10.00 per share, for gross proceeds to the Company of $45 million.
Less than two weeks later, on February 2, 2017, Stemline provided an update "on its ongoing pivotal Phase 2 trial" and disclosed that, "[o]n January 18, the Company received a report that a patient death had occurred. The patient had developed capillary leak syndrome (CLS), a known, sometimes fatal, and well-documented side effect of SL-401." Following this news, shares of the Company's common stock declined $4.15 per share, or over 42.5%, to close on February 2, 2017 at $5.60 per share, on unusually heavy trading volume.
The complaint alleges that Stemline and certain of its executive officers violated the federal securities laws by making false and misleading statements and/or failing to disclose that a cancer patient in a Stemline clinical trial tied to SL-401 died from a severe side effect on January 18, 2017. Additionally, the complaint alleges that, as a result of the foregoing, the defendants' statements about Stemline's business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Stemline shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or at firstname.lastname@example.org.
Stemline shareholders may, no later than April 4, 2017, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. For additional information or to learn how to participate in this action please visit https://www.ktmc.com/new-cases/stemline-therapeutics-inc#join
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
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SOURCE Kessler Topaz Meltzer & Check, LLP