The original complaint charges Northwest Biotherapeutics and certain of its officers and directors with violations of the Exchange Act. Northwest Biotherapeuticsis a development stage biotechnology company focused on discovering, developing, and commercializing immunotherapy products that safely generate and enhance immune system responses to effectively treat cancer. NWBO has two basic technology platforms applicable to cancer therapeutics; dendritic cell-based cancer vaccines, which are called DCVax(R) and monoclonal antibodies for cancer therapeutics.
The complaint alleges that during the Class Period, Northwest Biotherapeutics issued materially false and misleading statements. Northwest Biotherapeutics issued a press release on July 9, 2007 entitled "World's First Therapeutic Vaccine for Brain Cancer Commercially Available to Patients in Switzerland." The release stated that Northwest Biotherapeutics received an "authorization for use" from the Swiss authorities and that "DCVax-Brain is the first commercially available therapeutic vaccine for such cancers. The Company intends to begin making the product available to patients in Q3 2007." A week later, on July 16, 2007, Northwest Biotherapeutics issued another press release explaining that the authorization it received was really just for import/export purposes, and was conditional even for those limited purposes. Northwest Biotherapeutics stated that the Swiss government has not yet reviewed DCVax for neither safety nor efficacy. Northwest Biotherapeutics's stock which traded up from $2.30 per share to as high as over $7 per share during the Class Period has since dropped to below $3 per share.
As summarized by the Company’s FORM 10-Q for the quarterly period ended June 30, 2009, on August 13, 2007, a complaint was filed in the U.S. District Court for the Western District of Washington naming the Company, the Chairperson of its Board of Directors, and its Chief Executive Officer, as defendants in a class action for violation of federal securities laws. After this complaint was filed, five additional complaints were filed in other jurisdictions alleging similar claims. The complaints were filed on behalf of purchasers of the Company’s Common Stock between July 9, 2007 and July 18, 2007 and allege violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The complaints seek unspecified compensatory damages, costs and expenses. On December 18, 2007, a consolidated complaint was filed in the U.S. District Court for the Western District of Washington consolidating the stockholder actions previously filed. The putative securities class action lawsuit, In re Northwest Biotherapeutics, Inc. Securities Litigation, No. C-07-1254-RAJ was settled with prejudice January 8, 2009. The Company has agreed to pay in settlement US$1 million. In accordance with the stipulation the insurance company has directly deposited the $1,000,000 in a court controlled escrow account. The settlement must be approved by the Court.
On June 16, 2009, Judge Richard A Jones approved the final settlement. On July 10, 2009, Judge Jones granted the motion for attorney fees and expenses.