Bronstein, Gewirtz & Grossman, LLC9191 has filed a class action lawsuit against Galena Biopharma Inc (NASDAQ:GALE), a top biotech stocks company and some of its officers. Bronstein, Gewirtz & Grossman, LLC9191 will from August 11, 2014 to January 31, 2017 act on behalf of buyers of Galena securities.
The class action filed by Bronstein, Gewirtz & Grossman, LLC is meant to recover damages against Galena Biopharma Inc allegedly for violating the provisions of the federal securities laws
Bronstein, Gewirtz & Grossman, LLC alleges that throughout the entire Class Period, Galena Biopharma made erroneous and misleading statements contrary to the provisions of the federal securities laws. Among other things, Galena made sales of Abstral basing on unsustainable sale and marketing practices which could to institution of criminal investigation against Galena.
The complaint has alleged that Galena on December 22, 2015 through a Form 8-K filed at the Securities and Exchange Commission disclosed that Galena had been issued with a subpoena by a New Jersey Attorney’s Office requesting a number of documents touching on marketing of ABSTRAL®
The complaint also alleges that two of Galena’s high-prescribing physicians were facing prosecution after a federal investigation found the two to have grossly violated the False Claims Act together with several other federal statutes. The complaint also added that Galena could be under investigation by the FDA and other governmental bodies for allegedly engaging in unlawful promotional practices.
The complaint finally alleges that Galena on January 31, 2017 announced that it’s President and Chief Executive Officer Mark W. Schwartz had resigned. Following the announcement, the company’s shares dropped by $0.53 for the following two trading days. Galena later announced the appointment of Stephen F. Ghiglieri as the interim chief executive officer to fill the position left by Mark W. Schwartz. The company’s board ratified the appointment in a move to maintain the company’s development potential.
The complaint is now advising those who may be members of the proposed Class to move to the court before April 14, 2017 so as to be a lead plaintiff for the class.