SAN DIEGO--(BUSINESS WIRE)-- Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/peregrine/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Peregrine Pharmaceuticals, Inc. (“Peregrine”) (NASDAQ:PPHM) common stock during the period between August 30, 2012 and September 26, 2012 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from September 28, 2012. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/peregrine/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Peregrine and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Peregrine is a clinical-stage biopharmaceutical company that develops and manufactures monoclonal antibodies for the treatment of cancer and viral infections. Peregrine’s key product is bavituximab, an experimental drug for use in the treatment of non-small cell lung cancer.
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 effectiveness of bavituximab for use in treating non-small cell lung cancer, making it impossible for shareholders to gain a meaningful or realistic understanding of the drug’s prospects. As a result of defendants’ false statements, Peregrine’s stock traded at artificially inflated prices during the Class Period, reaching a high of $5.39 per share on September 21, 2012.
On September 24, 2012, Peregrine issued a press release warning of discrepancies in the results of its mid-stage lung cancer trial and advising investors that they should not rely on the clinical data the Company had previously disclosed from its Phase II bavituximab trial in patients with second-line non-small cell lung cancer. On this news, Peregrine’s stock plummeted $4.23 per share to close at $1.16 per share on September 24, 2012, a one-day decline of 78%.
On September 26, 2012, Peregrine filed a Form 8-K with the SEC, which disclosed that the Company had received a written notice of default from Oxford Finance LLC with respect to a security agreement the Company had entered into on August 30, 2012. According to the Company, the lender deemed the Company’s disclosure on September 24, 2012 concerning the major discrepancies in the results from its cancer trial to be a material adverse change under the terms of the loan agreement, and, as result, the lender accelerated the repayment of the loan and demanded repayment in full for the outstanding amounts. On this news, Peregrine’s stock declined again, falling $0.55 per share to close at $1.11 per share on September 27, 2012, a one-day decline of 33%.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the previously reported results from Peregrine’s Phase II trial in second-line non-small cell lung cancer could not be relied upon, as major discrepancies existed between patient sample test results and patient treatment codes; (b) Peregrine lacked the proper internal controls related to conducting clinical trials and reporting the results of those trials; (c) Peregrine lacked sufficient capital to fund its operations for the long term; and (d) Peregrine lacked a reasonable basis to make positive statements about the Company or its outlook, including statements about the effectiveness of bavituximab for patients with non-small cell lung cancer or the Company’s ability to fund its operations for the next 12 months.
Plaintiff seeks to recover damages on behalf of all purchasers of Peregrine common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm’s recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information.
Source: Robbins Geller Rudman & Dowd LLP