An investigation on behalf of current long term investors in Galena Biopharma Inc (NASDAQ:GALE) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NASDAQ:GALE stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 03/23/2017 -- An investigation on behalf of current long-term investors in shares of Galena Biopharma Inc (NASDAQ:GALE) concerning potential breaches of fiduciary duties by certain directors and officers of Galena Biopharma Inc was announced.
Investors who are current long term investors in Galena Biopharma Inc (NASDAQ:GALE) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call 858-779-1554.
The investigation by a law firm for current long term investors in NASDAQ:GALE stocks follows a lawsuit filed recently against Galena Biopharma Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:GALE stocks, concerns whether certain Galena Biopharma directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in February 2017 in the U.S. District Court for the District of New Jersey the plaintiff alleges that the Defendants made false and/or misleading statements and/or failed to disclose that Galena Biopharma Inc's sales of Abstral were based on unsustainable sales and marketing practices, that such sales and marketing practices could subject Galena Biopharma Inc to a criminal investigation, and that as a result, Defendants' statements about Galena's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On November 9, 2015 Galena Biopharma Inc disclosed plans to "divest its commercial business," which included the Company's breakthrough cancer pain drug, Abstral.
On March 10, 2016, Galena Biopharma Inc disclosed that "[a] federal investigation of two of the high-prescribing physicians for Abstral has resulted in the criminal prosecution of the two physicians for alleged violations of the federal False Claims Act and other federal statutes," and that the Company had received a trial subpoena for documents in connection with that investigation. Galena Biopharma Inc further disclosed that "other governmental agencies may be investigating our Abstral promotion practices," and that "on December 16, 2015, we received a subpoena issued by the U.S. Attorney's Office in District of New Jersey requesting the production of a broad range of documents pertaining to our marketing and promotional practices for Abstral."
On January 31, 2017, Galena Biopharma Inc announced the resignation of Mark W. Schwartz from his positions as President, Chief Executive Officer, and a member of the Board of Directors.
Those who purchased shares of Galena Biopharma Inc have certain options and should contact the Shareholders Foundation.
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