A law firm recently announced that it filed a securities class action lawsuit on behalf of shareholders of an oncology treatment company.
Bernstein Liebhard, LLP, filed the litigation in the U.S. District Court for the District of Oregon against Galena Biopharma, Inc. This includes all shareholders who purchased interests in the company during the class period between Nov. 6, 2013, and Feb. 14, 2014.
The allegations that developed into the lawsuit were related to the company's board of directors and other officers potentially violating the Securities Exchange Act of 1934, as they may have given information that was either false or misleading. When the information surfaced, the stock inflated artificially, jumping to $7.48 per share on Jan. 16, 2014. When this occurred, the company's CEO sold approximately $3.8 million in stock.
It is possible for any shareholder during the aforementioned class period to become lead plaintiff in the case. It is important for those interested in the position to file the paperwork with the court by May 5, 2014. This is not a mandatory action in order to collect in the event of a monetary return, and shareholders can remain absent members of the class.
For any shareholders looking for more information on this case, speaking with the law firm is an option. The best person to contact is Joseph Seidman, Jr., and he can be reached by telephone or email. It is also possible to contact the court to receive a copy of the lawsuit.
Second lawsuit announced
Another law office explained that it also filed a class action claim against Galena Biopharma for many of the aforementioned reasons.
Law firm Levi and Korsinsky, LLP, noted that the lawsuit was filed in the same court for the same class period. An article from TheStreet.com on Feb. 12, 2014, featured allegations that the company made efforts to increase its stock price artificially, with a related firm named The Dream Team Group sending out articles that talked up the company's performance under different names. Two days later, Galena Biopharma confirmed that it paid The Dream Team Group to make promotions.
It is also an option for shareholders to speak with this law firm about the situation in order to learn more. Joseph Levi is the best person to reach, and stockholders can talk to him via email or telephone. The law firm's website also provides more details.