NEW YORK, March 6, 2014 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the District of Oregon on behalf of purchasers (the "Class") of common stock of Galena Biopharma, Inc. ("Galena" or the "Company") (NASDAQ: GALE) during the period of November 6, 2013 and February 14, 2014 (the "Class Period").
The complaint charges Galena and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Galena is a biotechnology company focused on the development and commercialization of targeted oncology treatments that address major unmet medical needs to advance cancer care.
The complaint alleges that throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public. As a result of defendants' false statements, Galena's stock traded at artificially inflated prices during the Class Period, reaching a high of $7.48 per share on January 16, 2014. While Galena's stock price was artificially inflated, its Chief Executive Officer was able to sell $3.8 million worth of his Galena stock.
On February 12, 2014, Adam Feuerstein published an article on TheStreet.com claiming Galena was engaging in a misleading brand awareness campaign aimed at boosting its stock price. Additionally, the article represented that Galena paid investor relations firm The DreamTeam Group ("DreamTeam") to publish articles under aliases promoting the Company's stock without disclosing who paid for them. On this news, Galena's stock price dropped $0.85 per share to close at $4.34 per share on February 12, 2014, a one-day decline of 16% on volume of nearly 24 million shares. Then, on February 14, 2014, Galena issued a letter to its shareholders acknowledging that the Company had engaged DreamTeam. On this news, Galena's stock price dropped another $0.63 per share to close at $3.73 per share on February 14, 2014, a one-day decline of 14% on volume of nearly 41 million shares, and a decline of 50% from the stock's Class Period high.Plaintiffs seek to recover damages on behalf of all Class members who invested in Galena common stock during the Class Period. If you invested in Galena common stock as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than May 5, 2014. A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.