The law firm of Federman & Sherwood has initiated an investigation into California-based Peregrine Pharmaceuticals, Inc. (NASDAQ: PPHM) (“Peregrine”) with respect to possible breaches of fiduciary duty by the company’s officers and directors, as well as violations of state and federal securities laws, when the Company failed to disclose to its investors the problems it was facing with its double-blind placebo-controlled Phase II trial of its drug Bavituximab in patients with second-line, non-small cell lung cancer, as well as fully disclosing the Company’s true financial condition when Peregrine announced it had defaulted on a $30 million loan agreement it had just entered into on August 30, 2012. Federman & Sherwood is investigating whether: (1) the information being provided to Peregrine shareholders about the clinical trials surrounding Bavituximab during the class period was false and/or misleading at the time such information was being disseminated; (2) whether the Company knew that the clinical study with Bavituximab was not going well and failed to properly and timely notify its shareholders of same; and, (3) whether the Company properly disclosed its true financial condition during the Class Period. If you currently own common stock in Peregrine Pharmaceuticals, Inc. and purchased your shares between September 7, 2012 and September 24, 2012; have information to assist in our investigation; or, have any questions or concerns regarding this notice or preservation of your rights, please contact William B. Federman at firstname.lastname@example.org. Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases.
In trading on Thursday, shares of Peregrine Pharmaceuticals Inc.'s 10.50% Series E Convertible Preferred Stock were yielding above the 12% mark based on its quarterly dividend (annualized to $2.625), with shares changing hands as low as $20.34 on the day. As of last close, PPHMP was trading at a 11.40% discount to its liquidation preference amount.