NEW YORK, March 7, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the District of Oregon on behalf of all persons who purchased or otherwise acquired the securities of Galena Biopharma, Inc. ("Galena" or the "Company") (Nasdaq:GALE) during the period between November 6, 2013 and February 14, 2014 (the "Class Period").
The Complaint alleges that throughout the Class Period, Defendants violated the federal securities laws by disseminating false and misleading statements to the investing public. As a result of Defendants' false statements, Galena's stock traded at artificially inflated prices during the Class Period, reaching a high of $7.48 per share on January 16, 2014. The Complaint also alleges that while Galena's stock price was artificially inflated, its Chief Executive Officer was able to sell $3.8 million worth of his Galena stock.
On February 12, 2014, Adam Feuerstein published an article on TheStreet.com claiming Galena was engaging in a misleading brand awareness campaign aimed at boosting its stock price. Additionally, the article represented that Galena paid investor relations firm The DreamTeam Group ("DreamTeam") to publish articles under aliases promoting the Company's stock without disclosing who paid for them. On this news, Galena's stock price dropped $0.85 per share to close at $4.34 per share on February 12, 2014, a one-day decline of 16% on volume of nearly 24 million shares. Then, on February 14, 2014, Galena issued a letter to its shareholders acknowledging that the Company had engaged DreamTeam. On this news, Galena's stock price dropped another $0.63 per share to close at $3.73 per share on February 14, 2014, a one-day decline of 14% on volume of nearly 41 million shares, and a decline of 50% from the stock's Class Period high.
If you wish to serve as lead plaintiff, you must move the Court no later than May 5, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at email@example.com or firstname.lastname@example.org.
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Source:Gainey McKenna& Egleston