SAN DIEGO, March 17, 2017 /PRNewswire/ -- Shareholder Rights Law Firm Johnson & Weaver, LLP (J&W) announces the filing of a class action lawsuit on behalf of purchasers of Stemline Therapeutics, Inc. (NASDAQ: STML) between January 6, 2017 and February 1, 2017, both dates inclusive (the "Class Period"). The lawsuit seeks to recover damages for Stemline investors under the federal securities laws.
If you wish to serve as a lead plaintiff, you must move the Court no later than April 4, 2017. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471. If you email, please include your phone number. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the prospects for Stemline's SL-401 drug candidate, including that a cancer patient in a Stemline clinical trial for SL-401 had died from a severe side effect on January 18, 2017. As a result of defendants' false statements and/or omissions, Stemline's stock traded at artificially inflated prices during the Class Period, reaching a high of $13.95 per share on January 10, 2017.
On January 19, 2017, Stemline issued a press release announcing a proposed follow-on public offering of the Company's common stock. Subsequently, on January 20, 2017, Stemline announced the pricing of the offering of 4.5 million shares of the Company's common stock at $10.00 per share, with projected gross proceeds of $45 million to Stemline.
Then, on February 2, 2017, before the market opened, Adam Feuerstein published an article on TheStreet reporting that on January 18, 2017, a cancer patient in a clinical trial of SL-401 for the treatment of blastic plasmacytoid dendritic cell neoplasm ("BPDCN") had died from a severe side effect tied to the drug. The article stated that on January 17, 2017, the patient had been diagnosed with capillary leak syndrome and had died the next day, "having received only two of the scheduled five doses of SL-401 of the initial treatment cycle." Subsequently on February 2, 2017, the Company issued a press release that provided an update on its ongoing trial for the treatment of BPDCN utilizing SL-401, confirming that BPDCN "has no approved treatment." The Company admitted receiving the report regarding the patient death on January 18, 2017, but continued with its stock offering on January 19, 2017, without disclosing the patient death to investors. As a result of this news, the price of Stemline stock dropped $4.15 per share, to close at $5.60 per share on February 2, 2017, a decline of 42% on volume of nearly 3.7 million shares traded.
Plaintiff seeks to recover damages on behalf of all purchasers of Stemline's common stock during the Class Period.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/shareholder-deadline-reminder-stml-johnson--weaver-llp-announces-securities-class-action-lawsuit-against-stemline-therapeutics-and-encourages-investors-with-losses-to-contact-the-firm-300425446.html
SOURCE Johnson & Weaver, LLP