NEW YORK, Aug. 1, 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 Nevada on behalf of all persons who purchased or otherwise acquired the securities of Galectin Therapeutics Inc. ("Galectin" or the "Company") (Nasdaq:GALT) during the period between January 6, 2014 and July 28, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that throughout the Class Period, Defendants violated the federal securities laws by disseminating false and misleading statements to the investing public about the Company's business and prospects. As a result of Defendants' false statements, the Company's stock traded at artificially inflated prices during the Class Period, reaching a high of $18.30 per share on February 27, 2014.
On July 24, 2014, Emerging Growth Corp. ("Emerging Growth") issued a press release through Accesswire stating that Galectin was "nipping at [the] heels" of its competitors and "actually may be closer than what first appears with a Phase 1 trial because of the potential to treat fatty liver disease even once it has progressed." Then, on July 28, 2014, an article on SeekingAlpha.com claimed that Galectin had "strong ties to stock promoters" engaging in a misleading brand awareness campaign aimed at boosting its stock price. The same day, a separate article on TheStreet.com revealed that Emerging Growth, through its parent company TDM Financial, a penny-stock promotions firm, was the investor relations and marketing company Galectin was paying for misleading promotional campaigns to entice investors to buy its stock. On this news, Galectin's stock fell $8.84 per share to close at $5.70 per share on July 29, 2014, a one-day decline of nearly 61% on volume of nearly 7.7 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later than September 29, 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 firstname.lastname@example.org or email@example.com.
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Source:Gainey McKenna& Egleston