NEW YORK--(BUSINESS WIRE)--
Rosen Law Firm, a global investor rights law firm, announces it is investigating potential securities claims on behalf of shareholders of Galena Biopharma, Inc. (NASDAQ:GALE) resulting from allegations that Galena may have issued materially misleading business information to the investing public.
On November 9, 2015, Galena disclosed plans to “divest its commercial business,” which included Galena’s breakthrough cancer pain drug, Abstral. On this news, shares of Galena fell $0.19 per share, or 11%, from its previous closing price to close at $1.53 per share on November 10, 2015.
Subsequently, on March 10, 2016, Galena disclosed 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,” and that Galena had received a trial subpoena for documents in connection with that investigation. Galena further disclosed that “other governmental agencies may be investigating our Abstral promotion practices,” and that “on December 16, 2015, we received a subpoena issued by the U.S. Attorney’s Office in District of New Jersey requesting the production of a broad range of documents pertaining to our marketing and promotional practices for Abstral.” On this news, shares of Galena fell $0.03 per share, or 3.3%, from its previous closing price to close at $0.86 per share on March 11, 2016.
Then, on January 31, 2017, Galena announced the resignation of Mark W. Schwartz, Galena’s President, Chief Executive Officer, and a member of the Board of Directors. On this news, shares of Galena fell $0.53 per share, or 32%, over two trading days to close at $1.12 per share on February 2, 2017.
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Galena investors. If you purchased shares of Galena on or before January 31, 2017 please visit the firm’s website at http://www.rosenlegal.com/cases-1054.html for more information. You may also contact Phillip Kim or Kevin Chan of Rosen Law Firm toll free at 866-767-3653 or via email at [email protected] or [email protected].
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.
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