Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Peregrine Pharmaceuticals, Inc. (“Peregrine” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Several class action lawsuits were filed in the U.S. District Court for the Central District of California by other law firms on behalf of purchasers of the common stock of Peregrine Pharmaceuticals, Inc. (NASDAQ: PPHM) between July 16, 2012 and September 26, 2012, inclusive (the “Class Period”).
The complaints allege that Peregrine and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) the clinical data from the Company’s Phase II trial of bavituximab, one of Peregrine’s lead product candidates being developed as a second-line treatment for lung cancer, was unreliable because there were major discrepancies between some patient sample test results and patient treatment code assignments; (2) Peregrine lacked the proper internal controls relating to the conduct of clinical trials; (3) Peregrine lacked sufficient capital to fund its operations for the long term; and (4) as result of the foregoing, Defendants’ positive statements about Peregrine’s business, operations and prospects, lacked a reasonable basis.
On September 24, 2012, shares of Peregrine dropped from $5.39 to $1.16 after the Company informed investors they should no longer rely on clinical data it had previously reported from the Phase II bavituximab trial, because the Company had
“discovered major discrepancies between some patient sample test results and patient treatment code assignments.”
On September 26, Peregrine reported that it had received a written Notice of Default from lenders on the remaining balance of a $30 million term loan indicating that the Company’s announcement of major discrepancies in the bavituximab trial constituted a “material adverse change.” The price of Peregrine shares dropped further on September 27 to $1.11.
Cohen Milstein encourages all investors who purchased Peregrine common stock between July 16, 2012 and September 26, 2012 or former employees with information concerning this matter to contact the firm.