CTI Biopharma investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, CTI Biopharma 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.
The complaint alleges that throughout the Class Period, the 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, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose: (1) that pacritinib was attributed as a potential cause in the death and injuries of several patients; (2) that the company’s clinical trials showed the dangers of pacritinib usage; (3) that the company’s new drug application for pacritinib would likely be withdrawn; (4) that, as such, the company’s future revenues were impaired; (5) that the company lacked adequate internal controls; and (6) that, as a result of the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 the defendants’ statements about CTI Biopharma’s business, operations, and prospects, were materially false and misleading at all relevant times.
On September 24, 2015, CTI Biopharma priced an offering of 10,000,000 shares, at a price of $1.57 per share. According to the complaint, on February 8, 2016, CTI Biopharma issued a press release announcing that a partial clinical hold has been placed on pacritinib by the U.S. Food and Drug Administration (“FDA”).
Following this news, shares of CTI Biopharma declined $0.68 per share, or over 60% to close at $0.44 on February 8, 2016, on unusually heavy volume.
Then, on February 9, 2016, the company issued a press release announcing that the FDA had placed a full clinical hold on pacritinib.
ollowing this news, the company’s shares fell over 40% during intraday trading on February 10, 2016, on unusually heavy volume of over 15 million shares.
If you are a member of the class described above, you may no later than April 11, 2016 , move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706