A lawsuit was filed on behalf of investors in KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) shares over alleged securities laws violations and NASDAQ:KBIO investors should contact the Shareholders Foundation.

San Diego, CA -- (SBWire) -- 01/18/2016 --A shareholder in KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by KaloBios Pharmaceuticals Inc.

Investors who purchased a significant amount of shares of KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) have certain options and for certain investors are short and strict deadlines running. Deadline: February 16, 2015. NASDAQ:KBIO investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of purchasers of KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) common shares between November 19, 2015 and December 17, 2015, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between November 19, 2015 and December 17, 2015 defendants allegedly failed to disclose that the CEO of the Company was engaged in a scheme involving the illegal use of stock from Retrophin, Inc. to pay off debts associated with other unrelated business ventures, that discovery and revelation of the scheme would likely undermine the Company's operations and prospects, and that, as a result of the foregoing, Defendants' statements about KaloBios' business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

On November 13, 2015, KaloBios Pharmaceuticals, Inc. announced that it will wind down its operations and that it has engaged the Brenner Group to lead those efforts. Shares of KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) declined to as low as $0.44 per share on November 16, 2015.

Then on November 18, 2015 Martin Shkreli, the chief executive of privately held biopharmaceutical company Turing Pharmaceuticals AG, had been acquiring KaloBios shares on Nov. 16 and 17, according to filings with the Securities and Exchange Commission.

Turing Pharmaceuticals gained notoriety in September for raising the price of an anti-parasite tablet more than 50-fold.

On November 18, 2015, KaloBios Pharmaceuticals, Inc. announced that it has been informed that an investor group comprised of Martin Shkreli and associates together have acquired more than 50% of the outstanding shares of KaloBios, and that the company is in discussions with Mr. Shkreli regarding possible direction for the company to continue in operation.

On November 19, 2015, KaloBios Pharmaceuticals, Inc.announced that an investor group led by Martin Shkreli, the Founder and Chief Executive Officer of Turing Pharmaceuticals AG, has acquired 70% of its outstanding shares, and also announced the appointment of Martin Shkreli to the position of Chief Executive Officer and his election as Chairman of the Board.

Then on December 17, 2015, news outlets reported that Martin Shkreli, the CEO of KaloBios, was arrested on fraud charges relating to his illegal use of stock from Retrophin, Inc. to pay off debts associated with other unrelated business ventures.

Shares of KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) were halted on December 17, 2015.

On December 21, 2015, KaloBios Pharmaceuticals, Inc. announced that on December 17, 2015, Martin Shkreli was terminated as Chief Executive Officer of the Company and resigned from his position as a member of the board of director, and that in addition, on December 17, 2015, Tony Chase resigned from his position as a member of the board of directors.

Those who purchased shares of KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com