Galena Biopharma Inc (NASDAQ:GALE) allegedly, is under fire, as the company is being taken to court, regarding an accusation, which details to why the company was not being transparent to its shareholders.
The class action case against the company was filed in the U.S District Court for the District of New Jersey. The filing was placed by the legal representative firm, Robbins Arroyo LLP. This was filed on behalf of the shareholders at the firm.
More details about the lawsuit filing against Galena Biopharma
The filing allegedly, questions on behalf of all purchasers, who purchased securities from Galena Biopharma between August 11, 2014, and January 31, 2017. The filing further accuses the company of infracting the Securities Exchange Act of 1934.
The first of the accusations against the company regards the financial statements, which the company released in the second quarter of 2014. This then, attested to all the financial statements, dating from this date, to that of the final, which was regarding the product Abstral in 2015.
This then got more fishy as on December 22, 2015, the company received a subpoena for all data, and paperwork relating to Abstral. When releasing the documentation, the company stated from the footing that it expects to receive penalties based on the information that would be revealed.
A little while after this, January 31, 2017, the former CEO of the company, Mark W. Schwartz resigned. However, following this resignation, it was also noted that simultaneously, the company had just been placed under investigation by federal prosecutors.
What options do the company’s shareholders have on a legal basis
However, the shareholders of the company, do not have to fret over the legal penalties, to which the company may experience throughout the upcoming trials. It has been listed that all shareholders are able to contact the legal entity representing them, so as to ensure that the company gets just treatment, as well as the shareholders.