Cell Therapeutics, Inc. is an American biopharmaceutical company that develops and commercializes therapies to treat blood-related cancers.

According to a press release dated March 12, 2010, the Complaint alleges that throughout the Class Period, Defendants failed to disclose material adverse facts about the Company’s business and prospects. Specifically, the Complaint alleges that Defendants failed to disclose: (a) that the Special Protocol Assessment (“SPA”) with the United States Food and Drug Administration (“FDA”) for pixantrone was invalidated in March 2008; (b) that the Company’s pixantrone study enrolled a large number of patients who did not suffer from aggressive non-Hodgkin’s lymphoma; (c) that the Company’s pixantrone drug was cardiotoxic; and (d) that, as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about pixantrone and its prospects.

On February 8, 2010, the FDA posted its assessment of pixantrone in advance of its February 10, 2010 advisory meeting. With regard to the regulatory history of pixantrone, the FDA Briefing Document stated, among other things, that the Company’s SPA was invalidated in March 2008 and that the Company’s pixantrone study results were not meeting the FDA’s standards for approval.

On August 2, 2010, Judge Marsha J. Pechman signed the Order consolidating several actions under the lead case, and appointed the CTIC Investor Group as lead Plaintiff and approved Brower Piven as lead Counsel and Zwerling, Schachter & Zwerling as liaison Counsel. On September 27, 2010, the lead Plaintiff filed a Consolidated Amended Class Action Complaint. The Defendants filed a motion to dismiss on October 27, 2010.

On February 4, 2011, Judge Marsha J. Pechman granted in part and denied in part the motion to dismiss. According to the Order, the allegations by Plaintiffs in their Consolidated Amended Complaint create a “strong inference” of scienter which is at least as cogent and compelling as the inference urged by Defendants. Plaintiffs have adequately pled loss causation regarding both “corrective disclosures.” None of Defendants’ statements (except their SEC filings) are entitled to “safe harbor” protection. “Control person liability” has been sufficiently alleged based on the allegations of 10(b) and 10b-5 violations. The claim for insider trading alleged against one individual defendant will remain; the insider trading claims against the other Defendants will be dismissed."

Jury trial was set for June 2012. Plaintiffs were instructed to file their motion for class certification on or before February 15, 2012.

On March 16, 2012, the Court issued an Order granting preliminary approval of Settlement, granting conditional class certification, and providing for notice.

On July 25, 2012, the Court issued an Order awarding attorneys' fees and expenses.