Robbins Arroyo LLP: Spectrum Pharmaceuticals, Inc. (SPPI) Misled Shareholders According to a Recently Filed Class Action
September 27 2016 - 2:13PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Spectrum Pharmaceuticals,
Inc. (NASDAQGS: SPPI) in the U.S. District Court for the Central
District of California. The complaint is brought on behalf of all
purchasers of Spectrum securities between December 16, 2015 and
September 16, 2016, for alleged violations of the Securities
Exchange Act of 1934 by Spectrum's officers and directors. Spectrum
is a biotechnology company that develops and commercializes
oncology and hematology drug products. One of the company's primary
products is apaziquone, which is being developed to treat
non-muscle invasive bladder cancer.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/spectrum-pharmaceuticals-inc
Spectrum Accused of Concealing Critical Information from the
FDA
According to the complaint, in 2007, Spectrum began its Phase 3
Studies for apaziquone—known as the 611 Study and the 612
Study—each of which enrolled patients who took apaziquone and a
placebo. Spectrum submitted a New Drug Application ("NDA") for
apaziquone to the U.S. Food and Drug Administration ("FDA") on
December 11, 2015. Subsequently, Spectrum specified that the drug
was extremely safe and that the study data from its Phase 3 trials
were highly significantly positive. On May 5, 2016, the company
held a conference call, stating that it was expecting an FDA
decision on the apaziquone NDA by December 11, 2016. The complaint
alleges, however, that Spectrum officials failed to disclose that:
(1) the FDA previously questioned whether the data from the 611 and
612 Studies were clinically meaningful; (2) the FDA advised
Spectrum officials in December 2012 not to submit the NDA based on
data from the 611 and 612 Studies; and (3) as a result, Spectrum's
public statements about its business, operations, and prospects
were false and misleading.
On September 14, 2016, Spectrum issued a press release stating
that apaziquone had not shown substantial evidence of treatment
versus a placebo. On the same day, the FDA published the FDA's
Briefing Document from Oncologic Drugs Advisory Committee Meeting
on Spectrum's apaziquone NDA on its website, which stated that
Spectrum was aware of faulty data it submitted in the NDA in 2012.
Then, on September 16, 2016, The Street published an article
discussing how Spectrum officials a hid from investors a key detail
from a December 2012 meeting with the FDA in which regulators told
the company not to seek approval for a bladder cancer drug because
two clinical trials failed to benefit patients. On this news,
Spectrum stock fell $0.13 per share, or over 2.6%, to close at
$4.72 per share on September 19, 2016.
Spectrum 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160927006552/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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