Glancy Prongay & Murray LLP Files Securities Class Action Lawsuit Against CTI BioPharma Corp.
11 February 2016 - 11:49AM
Business Wire
Glancy Prongay & Murray LLP (“GPM”) announces that it has
filed a class action lawsuit in the United States District Court
for the Southern District of New York on behalf of persons or
entities (“the Class”) who purchased or otherwise acquired CTI
BioPharma Corp. (“CTI” or the “Company”) (NASDAQ: CTIC) securities
pursuant and/or traceable to the Company’s Registration Statement
and Prospectus (collectively, the “Registration Statement”) issued
in connection with the Company’s public offering on or about
September 24, 2015 (the “Offering”); and/or (2) between March 4,
2014 and February 9, 2016, inclusive (the “Class Period).
If you are a member of the Class described above, you may move
the Court no later than 60 days from the date of this notice to
serve as lead plaintiff. Please contact Lesley Portnoy at
888-773-9224 or 310-201-9150, or at shareholders@glancylaw.com to
discuss this matter.
CTI is a biopharmaceutical company which provides medical
research services, and develops clinical treatment and drugs for
various cancers. One of the Company’s most advanced pipeline
products was pacritinib, a treatment for myleofibrosis.
On February 8, 2016, pre-market, CTI disclosed that it had been
alerted by the U.S. Food and Drug Administration (FDA) that the FDA
had placed a partial hold on clinical studies of CTI's primary
product, pacritinib. The FDA has recommended that CTI amend its
procedures for randomized studies to disallow crossover to
pacritinib, provide specific notifications, adjust certain
statements in both the investigator's brochure and informed consent
documents and other actions. Upon this news, CTI stock fell $0.68
per share, or over 60%, to close at $0.44 on February 8, 2016, on
unusually heavy volume.
On February 9, 2016, the Company issued a press release
announcing that the FDA had placed a full clinical hold on
pacritinib, and required that all patients currently on pacritinib
must discontinue pacritinib immediately. The Company further
reported that it had withdrawn the new drug application for
pacritinib. On this news the Company’s shares fell 40%, or $0.20
per share, on February 10, 2016, on unusually heavy volume of over
15 million shares
The complaint alleges that throughout the Class Period,
Defendants made false and/or misleading statements, as well as
failed to disclose material adverse facts about the Company’s
business, operations, and prospects. Specifically, Defendants made
false and/or misleading statements and/or failed to disclose: (1)
the detrimental effect on survival of pacritinib; (2) that the
Company’s clinical trials demonstrated deaths associated with
pacritinib usage; (3) that the Company’s new drug application for
pacritinib would likely be withdrawn; (4) that, as such, the
Company’s future revenues were impaired; (5) that the company
lacked adequate internal controls; and (6) that, as a result of the
foregoing, the Company’s financial statements and Defendants’
statements about CTI Biopharma’s business, operations, and
prospects, were materially false and misleading at all relevant
times.
To be a member of the Class you need not take any action at this
time; you may retain counsel of your choice or take no action and
remain an absent member of the Class. If you wish to learn
more about this action, or if you have any questions
concerning this announcement or your rights or interests with
respect to these matters, please contact Lesley Portnoy,
Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park
East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150,
by e-mail to shareholders@glancylaw.com, or visit our website
at http://www.glancylaw.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160210006709/en/
Glancy Prongay & Murray LLP, Los AngelesLesley Portnoy,
310-201-9150 or
888-773-9224shareholders@glancylaw.comwww.glancylaw.com
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