LOS ANGELES -- (Business Wire)
Glancy
Prongay & Murray LLP(“GPM”)announces that it has
filed a class action lawsuit in the United States District Court for the
Southern District of New York on behalf of persons or entities (“the
Class”) who purchased or otherwise acquired CTI BioPharma Corp. (“CTI”
or the “Company”) (NASDAQ: CTIC) securities pursuant and/or traceable to
the Company’s Registration Statement and Prospectus (collectively, the
“Registration Statement”) issued in connection with the Company’s public
offering on or about September 24, 2015 (the “Offering”); and/or (2)
between March 4, 2014 and February 9, 2016, inclusive (the “Class
Period).
If you are a member of the Class described above, you may move the Court
no later than 60 days from the date of this notice to serve as lead
plaintiff. Please contact Lesley Portnoy at 888-773-9224 or
310-201-9150, or at shareholders@glancylaw.com
to discuss this matter.
CTI is a biopharmaceutical company which provides medical research
services, and develops clinical treatment and drugs for various cancers.
One of the Company’s most advanced pipeline products was pacritinib, a
treatment for myleofibrosis.
On February 8, 2016, pre-market, CTI disclosed that it had been alerted
by the U.S. Food and Drug Administration (FDA) that the FDA had placed a
partial hold on clinical studies of CTI's primary product, pacritinib.
The FDA has recommended that CTI amend its procedures for randomized
studies to disallow crossover to pacritinib, provide specific
notifications, adjust certain statements in both the investigator's
brochure and informed consent documents and other actions. Upon this
news, CTI stock fell $0.68 per share, or over 60%, to close at $0.44 on
February 8, 2016, on unusually heavy volume.
On February 9, 2016, the Company issued a press release announcing that
the FDA had placed a full clinical hold on pacritinib, and required that
all patients currently on pacritinib must discontinue pacritinib
immediately. The Company further reported that it had withdrawn the new
drug application for pacritinib. On this news the Company’s shares fell
40%, or $0.20 per share, on February 10, 2016, on unusually heavy volume
of over 15 million shares
The complaint alleges that throughout the Class Period, Defendants made
false and/or misleading statements, as well as failed to disclose
material adverse facts about the Company’s business, operations, and
prospects. Specifically, Defendants made false and/or misleading
statements and/or failed to disclose: (1) the detrimental effect on
survival of pacritinib; (2) that the Company’s clinical trials
demonstrated deaths associated with pacritinib usage; (3) that the
Company’s new drug application for pacritinib would likely be withdrawn;
(4) that, as such, the Company’s future revenues were impaired; (5) that
the company lacked adequate internal controls; and (6) that, as a result
of the foregoing, the Company’s financial statements and Defendants’
statements about CTI Biopharma’s business, operations, and prospects,
were materially false and misleading at all relevant times.
To be a member of the Class you need not take any action at this time;
you may retain counsel of your choice or take no action and remain an
absent member of the Class. If you wish to learn more about this action,
or if you have any questions concerning this announcement or your rights
or interests with respect to these matters, please contact Lesley
Portnoy, Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park
East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by
e-mail to shareholders@glancylaw.com,
or visit our website at http://www.glancylaw.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160210006709/en/
Contacts:
Glancy Prongay & Murray LLP, Los Angeles
Lesley Portnoy,
310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com
Source: Glancy Prongay & Murray LLP
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