Shareholder rights law firm Johnson & Weaver, LLP has commenced an investigation into whether certain officers and directors of Galena Biopharma, Inc. (NASDAQ: GALE) violated state or federal laws. Galena focuses on developing oncology treatments to address major unmet medical needs to advance cancer care.
The investigation is related to an article published on Wednesday, February 12, 2014 by Adam Feurstein of TheStreet.com. The article reported that a stock promotions firm was hired by Galena Biopharma to tout its stock. The article also stated that during this period, Galena insiders, including the CEO, sold nearly $10 million in Company shares. Galena acknowledged these facts in a letter to shareholders on February 14, 2014, confirming that it did finance the promotional campaign and that the trading did occur.
TheStreet.com's article elaborated that, “In July 2013, Galena paid $50,000 to a subsidiary of The DreamTeam Group for 240 days of ‘advertising, branding, marketing, investor relations and social media services,’ according to a disclaimer on The DreamTeam Group's Web site. DreamTeam also employs people who promote the stocks of paying clients on message boards, Facebook and via Twitter, according to the document.”
Since this article was published on February 12, 2014 the stock has declined over 25% to close at $4.00 on February 26, 2014.If you have information that could assist in this investigation, or if you are a Galena shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker ( firstname.lastname@example.org) by email or by phone at 619-230-0063, Ext. 118. If emailing, please include a phone number where you can be reached. Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.