NEW YORK, Oct. 2, 2012 /PRNewswire/ -- Harwood Feffer LLP (www.hfesq.com) is investigating potential claims against the board of directors of Peregrine Pharmaceuticals, Inc. ("Peregrine" or the "Company") (NASDAQ: PPHM), concerning whether the board has breached its fiduciary duties to shareholders.
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.
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 trading at $4.23 per share fell to a close of $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 to be a material adverse change under the terms of the loan agreement. 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%. On October 1, 2012, Peregrine stock closed at $0.86 per share.
Current holders of Peregrine shares may have a claim against the board for breaches of fiduciary duties, gross mismanagement, and/or abuse of control. If you own Peregrine shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
Matthew M. Houston, Esq.
Christopher J. Safrath
Harwood Feffer LLP
488 Madison Avenue
New York, New York 10022
Phone Numbers: (877) 935-7400
Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.
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SOURCE Harwood Feffer LLP