NEW YORK, May 28, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Middle District of Tennessee on behalf of all persons who purchased or otherwise acquired the securities of Provectus Biopharmaceuticals, Inc. ("Provectus" or the "Company") (NYSE MKT:PVCT) during the period between December 17, 2013 and May 22, 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 regarding the prospects for PV-10. The Complaint also alleges that as a result of Defendants' false statements, the Company stock traded at artificially inflated prices during the Class Period, reaching a high of $5.22 per share on January 22, 2014.
The Complaint further alleges that on January 23, 2014, Adam Feuerstein published an article on TheStreet.com stating that Provectus management had misled investors about the prospects for PV-10, questioning why Provectus had not yet started its promised Phase 3 randomized controlled trial of PV-10 and speculating that PV-10 may be obsolete in light of new skin cancer drugs being developed. On this news, according to the Complaint, Provectus's stock price fell $3.35 per share to close at $1.87 per share on January 23, 2014, a decline of nearly 64% on volume of 30.5 million shares.
On May 20, 2014, Feuerstein noted in an article published on TheStreet.com that on its website, Provectus had initially described its PV-10 drug as a "breakthrough" drug for skin cancer, but had later amended its description to "investigational." Then, on May 21, 2014, an investment community blog on SeekingAlpha.com highlighted the failure of Provectus to commence a Phase 3 trial of PV-10 and alleged that the Company was tied to a stock promotion firm whose other stock recommendations had recently had trading in their stock halted by the SEC. On the same day, Provectus issued a press release purporting to refute inaccuracies in the blog on SeekingAlpha.com. On this news, Provectus's stock price dropped $0.22 per share to close at $2.02 per share on May 22, 2014, a one-day decline of nearly 10%, and on May 23, 2014, trading in Provectus stock was halted at $2.02 per share.
If you wish to serve as lead plaintiff, you must move the Court no later than July 28, 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