NEW YORK, April 11, 2014 /PRNewswire/ -- Pomerantz LLP
has filed a class action lawsuit against Galena Biopharma,
Inc. ("Galena" or the "Company")(NASDAQ: GALE) and certain of
its officers. The class action, filed in United States
District Court, District of Oregon, and docketed under 3:14-cv-00410-HZ,
is on behalf of a class consisting of all persons or entities who
purchased or otherwise acquired Galena securities between
March 12, 2013 and February 11, 2014, both dates inclusive
(the "Class Period"). This class action seeks to recover damages
against Defendants for alleged violations of the federal securities
laws pursuant to Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Galena securities during
the Class Period, you have until May 5,
2014 to ask the Court to appoint you as Lead Plaintiff for
the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact
Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
Galena Biopharma, Inc. is a biopharmaceutical company that
focuses on developing oncology treatments to address major unmet
medical needs to advance cancer care.
The Complaint alleges that throughout the Class Period,
Defendants orchestrated a scheme to increase the value of the
Company's publicly traded stock so that insiders could reap the
benefits by selling millions of dollars of shares of the Company's
stock. Specifically, Defendants made false and/or misleading
statements and/or failed to disclose that: (i) Galena paid
$50,000 to a subsidiary of The
DreamTeam Group ("DreamTeam") for 240 days of "advertising,
branding, marketing, investor relations and social media services";
(ii) certain of DreamTeam's marketing tactics resembled stock
promotion schemes which ran afoul of standard investor relations
practices; (iii) DreamTeam published favorable articles about
Galena on Seeking Alpha that failed to disclose that they were
published by DreamTeam and instead appeared to be written from the
perspective of individual investors recommending an investment in
Galena; (iv) insiders took advantage of the resulting run up in the
Company's stock to sell millions of dollars of shares at
artificially inflated prices, coinciding with DreamTeam's
promotional efforts; (v) this type of stock promotion coupled with
heavy insider selling would ultimately cause massive losses to
investors as the public became aware of the "pump and dump" scheme;
and (vi) as a result of the foregoing, the Company's financial
statements were materially false and misleading at all relevant
times.
On February 12, 2014, a report was
published by a TheStreet.com stating that Galena "Pays For
Stock-Touting Campaign While Insiders Cash Out Millions",
describing the Company's stock promotion scheme. On this
news, Galena Biopharma shares declined $0.85, or over 16%, to close at $4.34 per share on February 12, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San
Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 70 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com.
CONTACT:
Robert S.
Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
SOURCE Pomerantz LLP