NEW YORK, Feb. 22, 2017 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP
(www.kaplanfox.com) is investigating claims on behalf of investors
of Galena Biopharma, Inc. ("Galena" or the "Company")
(NASDAQ: GALE).
A class action complaint has been filed in the United States
District Court for the District of New
Jersey against Galena and certain officers of the Company on
behalf of persons or entities that acquired Galena's securities
between August 11, 2014 and
January 31, 2017, inclusive (the
"Class") alleging violations of the Securities Exchange Act of
1934.
The complaint alleges that on December
22, 2015, Galena filed a Form 8-K with the Securities and
Exchange Commission ("SEC") disclosing that Galena received a
subpoena from the U.S. Attorney's Office for the District of
New Jersey that requested "a broad
range of documents pertaining to marketing and promotional
practices related to the product ABSTRAL® (fentanyl)
Sublingual Tablets."
The complaint also alleges that on March
10, 2016, the Company disclosed in its 2015 Form 10-K filing
that "[a] federal investigation of two of the high-prescribing
physicians for Abstral has resulted in the criminal prosecution of
the two physicians for alleged violations of the federal False
Claims Act and other federal statutes." Galena also disclosed that
it had "received a trial subpoena for documents in connection with
that investigation" and was "in contact with the U.S. Attorney's
Office for the Southern District of Alabama, which is handling the criminal
trial." Additionally, the Company noted that "the FDA
and other governmental agencies may be investigating [the
Company's] promotion practices."
Finally, the complaint alleges that on January 31, 2017, the Company announced the
resignation of Mark W. Schwartz,
Galena's President, Chief Executive Officer, and a member of the
Board of Directors, effective that day. Following this news,
shares of Galena fell $0.53 per share
over two trading days, more than 32%, to close at $1.12 per share on February 2, 2017.
The complaint alleges that throughout the Class Period,
defendants made materially false and/or misleading statements
and/or failed to disclose that: (1) the Company's sales of Abstral
were based on unsustainable sales and marketing practices; (2) such
sales and marketing practices could subject the Company to a
criminal investigation; and (3) as a result, defendants' statements
about the Company's business, operations, and prospects, were
materially false and misleading and/or lacked a reasonable basis at
all relevant times.
If you are a member of the proposed Class, you may move the
court no later than April 14, 2017 to
serve as a lead plaintiff for the purported class. You need
not seek to become a lead plaintiff in order to share in any
possible recovery. If you would like to discuss the complaint
or our investigation, please contact us by emailing
pmayer@kaplanfox.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP,
with offices in New York,
San Francisco, Los Angeles, Chicago and New
Jersey, has many years of experience in prosecuting investor
class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit
our website at www.kaplanfox.com. If you have any questions
about this Notice, the action, your rights, or your interests,
please contact:
Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: ffox@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California
94104
(415) 772-4700
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
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SOURCE Kaplan Fox &
Kilsheimer LLP