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Deadline Alert: GPM Reminds Investors of the April 14 Deadline in the Class Action Lawsuit Against Galena Biopharma, Inc.

Deadline Alert: GPM Reminds Investors of the April 14 Deadline in the Class Action Lawsuit Against Galena Biopharma, Inc.

Glancy Prongay & Murray LLP (“GPM”) reminds investors of the April 14, 2017 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Galena Biopharma, Inc. (“Galena” or the “Company”) (NASDAQ: GALE) securities between August 11, 2014 and January 31, 2017, inclusive (the “Class Period”). Galena investors have until April 14, 2017 to file a lead plaintiff motion.

On November 9, 2015 Galena disclosed plans to “divest its commercial business,” which included the Company’s breakthrough cancer pain drug, Abstral. On this news, the price of Galena common stock fell $0.19 per share, or 11%, to close at $1.53 per share on November 10, 2015, thereby injuring investors.

Thereafter, on March 10, 2016, the Company 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. The Company 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 this news, the price of Galena common stock fell 3.3%.

Finally, on January 31, 2017, the Company announced the resignation of Mark W. Schwartz, who was with the Company at the time of the above disclosures, from his positions as President, Chief Executive Officer, and a member of the Board of Directors. On this news, the price of Galena common stock fell 22.4%, thereby further injuring investors.

The filed complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that the Company violated various statutes in connection with its sales of Abstral; (2) that, as such, the Company was exposed to civil and criminal liability; and (3) that, as a result of the foregoing, Defendants’ statements about Galena’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

If you purchased Galena shares during the Class Period you may move the Court no later than April 14, 2017 to request appointment as lead plaintiff. To be a member of the class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Glancy Prongay & Murray LLP, Los Angeles
Lesley Portnoy, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com



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