Galena CEO Fired Following Stock-Promotions Scandal

Updated from 6:07 am EDT with additional Galena comment.

Lake Oswego, Oreg. (TheStreet) -- Galena Biopharma (GALE) CEO Mark Ahn was fired by the board of directors at a special meeting held Monday, according to a source close to the company.

Ahn's forced exit from the troubled Galena follows an internal investigation by the board which scrutinized the company's hiring of an investor relations firm to engage in a stock-promotions campaign. This investor relations firm, The DreamTeam Group, used false names to write and publish misleading and promotional articles about Galena on DIY investor web sites like Seeking Alpha.

After Galena's stock price rose due to the promotional campaign, Ahn and other insiders made millions of dollars by selling company stock.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

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