Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Cellular Biomedicine Group, Inc. (CBMG)
April 22 2015 - 7:00PM
Gainey McKenna & Egleston announces that a class action lawsuit
has been filed in the United States District Court for the Northern
District of California on behalf of all persons or entities that
purchased the securities of Cellular Biomedicine Group Inc.
(“Cellular” or the “Company”) (Nasdaq:CBMG) between June 18, 2014
and April 7, 2015, inclusive (the “Class Period”), alleging
violations of the Securities Exchange Act of 1934 against the
Company and certain of its officers (the “Complaint”).
Cellular Biomedicine Group Inc., is a biomedicine company that
develops treatments for cancerous and degenerative diseases in
Greater China. It focuses on developing and marketing cell-based
therapies to treat serious chronic and degenerative diseases, such
as cancer, osteoarthritis, tissue damage, various inflammatory
diseases, and metabolic diseases.
The Complaint alleges that throughout the Class Period,
defendants made materially false and misleading statements
regarding the Company’s operations, business prospects and
compliance with policies. The Complaint alleges that
the defendants made false and/or misleading statements and/or
failed to disclose that: (1) the Company achieved its valuation of
$500 million by using paid stock promoters, yet did not disclose
the use of such promoters in its regulatory filings pursuant in
violation of the Securities Act of 1933; (2) the Company’s "Car-T"
technology had experienced patient deaths and lacked any meaningful
value; and (3) as a result of the above, the Company’s financial
statements were materially false and misleading during the Class
Period.
On April 7, 2015, a report was published
on Seekingalpha.com, alleging that the Company was engaged in
an enormous fraudulent scheme to mislead investors and that the
Company did not have any material financial value. On
this news, CBMG securities declined $7.00 per share, or over 21.7%,
to close at $25.22 per share on April 7, 2015.
If you wish to serve as lead plaintiff, you must move the Court
no later than June 22, 2015. A lead
plaintiff is a representative party acting on behalf of other class
members in directing the litigation. If you wish to join the
litigation, or to discuss your rights or interests regarding this
class action, please contact Thomas J. McKenna, Esq. or Gregory M.
Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300,
or via e-mail at tjmckenna@gme-law.com or
gegleston@gme-law.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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