A new lawsuit was filed by a current investor in shares of Dendreon Corporation (NASDAQ: DNDN) against certain directors of Dendreon Corporation and current NASDAQ: DNDN stockholders should contact the Shareholders Foundation at email@example.com
San Diego, CA -- (SBWIRE) -- 05/29/2013 -- Another investor in shares of Dendreon Corporation (NASDAQ: DNDN) filed a lawsuit against certain directors of Dendreon Corporation over alleged breaches of fiduciary duties.
Investors who purchased Dendreon Corporation (NASDAQ: DNDN) shares prior to January 2011 and presently continue to hold those NASDAQ:DNDN shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants committed "brazen fraud" by dumping $85 million of their own shares at inflated prices while falsely claiming its cancer drug Provenge was "completely sold out”
Shares of Dendreon Corporation (NASDAQ: DNDN) rose from as low as $2.61 in March 09 to as high as $54.06 in April 2010.
The plaintiff claims that between April29, 2010 and August 3, 2011 defendants allegedly repeatedly publicized the strong demand for Provenge, which Dendreon Corporation claimed was so strong that it was overwhelming its ability to meet the demand.
However, NASDAQ: DNDN stocks fell from over $41 per share in the beginning in July 2011 to under $12 on Thursday, August 4, after Dendreon Corp withdrawal of its sales forecasts for its prostate cancer therapy Provenge. On, August 3, 2011, Dendreon had reported its Second Quarter 2011 Financial Results. Among other things, Dendreon said that it “is withdrawing its previous guidance of $350-400 million in revenue for 2011 and currently expects modest quarter over quarter revenue growth for the remainder of this year.”
The plaintiff alleges that certain defendants knew the rosy statements were "completely false" and unlike defendants, who were able to sell substantial holdings of Dendreon Corporation stock before the fraud was revealed, the company's unsuspecting shareholders suffered substantial losses. The plaintiff says that certain Dendreon Corporation's officers and directors realized over $85 million in proceeds from insider stock sales and that the revelation of the fraud was devastating, erasing $3.5 billion from Dendreon Corporation 's market capitalization in a single day.
Shares of Dendreon (NASDAQ:DNDN) fell from a close of $35.84 per share on August 3, 2011 to $10.37 per share on August 12, 2011 and declined to $7.60 per share to the end of 2011.
In 2012 NASDAQ:DNDN shares declined to as low as $3.85 per share.
On May 28, 2013, NASDAQ:DNDN shares closed at $3.89 per share. .
Those who purchased Dendreon Corporation (NASDAQ: DNDN) shares prior to January 2011 and presently continue to hold those NASDAQ:DNDN shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego