Spectrum investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Spectrum is a biotechnology company with fully integrated commercial and drug development operations, with a primary focus on oncology and hematology. This case involves the company’s drug presently in development called EVOMELA, a propylene glycol-free formulation of melphalan, the drug presently is use for the treatment of multiple myolema.
The complaint alleges that during the Class Period, the defendants made repeated misleadingly optimistic statements about EVOMELA, specifically touting it a future driver of the company’s revenues, and repeatedly, falsely stating that the company “fully expected” the U.S. Food and Drug Administration (“FDA”) to approve the New Drug Application (“NDA”) by October 23, 2015, and that the drug would likely be marketed by year end 2015. According to the complaint, at the time the defendants made these statements, they knew that: (1) EVOMELA is not materially clinically distinct from standard melphan, a drug that is presently being used in hospitals to treat multiple myeloma; (2) that their statements that current treatment contains proplyene glycol, which the company touted as toxic, is not toxic when used as an additive; and (3) that it is unlikely that doctors currently using generic melphalan would suddenly switch to EVOMELA.
The Class Period commences on May 7, 2015, when Spectrum filed a press release on Form 8-K, entitled “Spectrum Pharmaceuticals Reports Continued Advancement of Robust, Late-State Pipeline and First Quarter 2015 Financial Results.”
Then, on October 23, 2015, Spectrum issued a press release noting that the FDA issued a Complete Response Letter in responses to Spectrum’s NDA for EVOMELA. Spectrum reported that a Complete Response Letter is a communication from the FDA that informs companies that an application cannot be approved in its present form. Following this news, Spectrum’s stock fell $1.31 per share to close at $5.33 per share on October 23, 2015, a one-day decline of 20% on volume of 4.8 million shares.
If you are a member of the class described above, you may no later than January 4, 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