The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the District of New Jersey on behalf of purchasers of Galena Biopharma, Inc. (Nasdaq: GALE) ("Galena" or the "Company") securities during the period between August 11, 2014 through January 31, 2017, inclusive (the "Class Period"). Investors who wish to become proactively involved in the litigation have until April 14, 2017 to seek appointment as lead plaintiff.

If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Galena securities during the Class Period. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants' failure to disclose during the Class Period that the Company's sales of Abstral were based on unsustainable sales and marketing practices and could subject Galena to a criminal investigation.

According to the complaint, following a December 22, 2015 announcement that the Company received a subpoena from the U.S. Attorney's Office for the District of New Jersey relating to Abstral, a January 9, 2017 update on the investigation disclosing that the investigation is criminal and civil, and a January 31, 2017 press release announcing the resignation of the Company's President and Chief Executive Officer, the value of Galena shares declined significantly.

If you liked this article you might like

For These Small-Cap Biotech CEOs, Stock Promotion, Not Drug Development, Was Priority No. 1

How to Dig Deep for Value in These Exuberant Markets

Value Investors Have to Go Deeper

Gilead Sciences Leads Biotech Movers -- Plus Jim Cramer's Comments