SAN DIEGO and PALO ALTO, Calif., April 27, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Cellular Biomedicine Group, Inc. (NASDAQGM: CBMG) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between June 18, 2014 and April 7, 2015. Cellular Biomedicine develops treatments for cancerous and degenerative diseases in Greater China.
View this information on the law firm's Shareholder Rights Blog:
Cellular Biomedicine Misrepresents Its Business Practices
According to the complaint, defendants made materially false and misleading statements regarding the company's business and operational compliance policies. Specifically, the complaint alleges that Cellular Biomedicine failed to disclose that: (i) it achieved an unsustainable $500 million valuation by using paid stock promoters, but failed to disclose the use of such promoters in its regulatory filings; (ii) its "car-T" technology had experienced patient deaths and lacked any meaningful valuation; and (iii) as a result, its financial statements were materially false and misleading.
Cellular Biomedicine stock declined $7.00 per share or over 21% to close at $25.22 per share on April 7, 2015, following the publication of a Seeking Alpha article that revealed the company's practices. The article also alleges that the company's founders are inherently irresponsible, noting the company's: (i) participation in an illegal offshore stem cell clinic; (ii) partnership with a convicted felon serving time for fraud; and (iii) inability to file a full 50% of quarterly U.S. Securities and Exchange Commission filings.
Cellular Biomedicine Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in 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