NEW YORK, Feb. 10, 2017 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Galena Biopharma, Inc. ("Galena" or the "Company") (NASDAQ: GALE). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.
The investigation concerns whether Galena and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On November 9, 2015 Galena disclosed plans to "divest its commercial business," which included the Company's breakthrough cancer pain drug, Abstral. On this news, Galena's share price fell $0.19, or 11%, to close at $1.53 on November 10, 2015.
On March 10, 2016, the Company 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 the Company had received a trial subpoena for documents in connection with that investigation. The Company 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, Galena's share price fell $0.49, or 2.77%, to close at $17.23 on March 11, 2016.
On January 31, 2017, the Company announced the resignation of Mark W. Schwartz, from his positions as President, Chief Executive Officer, and a member of the Board of Directors. On this news, Galena's share price fell $0.37, or 22.42%, to close at $1.28 on February 1, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP
