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:
www.robbinsarroyo.com/shareholders-rights-blog/cellular-biomedicine-group-inc
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, DDonahue@robbinsarroyo.com, 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.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP