According to the law firm press release, Galena is a biotechnology company focused on the development and commercialization of targeted oncology treatments that address major unmet medical needs to advance cancer care.
The complaint alleges that throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public. As a result of defendants’ false statements, Galena’s stock traded at artificially inflated prices during the Class Period, reaching a high of $7.48 per share on January 16, 2014. While Galena’s stock price was artificially inflated, its Chief Executive Officer was able to sell $3.8 million worth of his Galena stock.
On February 12, 2014, an article on TheStreet.com claimed Galena was engaging in a misleading brand awareness campaign aimed at boosting its stock price. Additionally, the article represented that Galena paid investor relations firm The DreamTeam Group (“DreamTeam”) to publish articles under aliases promoting the Company’s stock without disclosing who paid for them. On this news, Galena’s stock price dropped $0.85 per share to close at $4.34 per share on February 12, 2014, a one-day decline of 16% on volume of nearly 24 million shares. Then, on February 14, 2014, Galena issued a letter to its shareholders acknowledging that the Company had engaged DreamTeam. On this news, Galena’s stock price dropped another $0.63 per share to close at $3.73 per share on February 14, 2014, a one-day decline of 14% on volume of nearly 41 million shares, and a decline of 50% from the stock’s Class Period high.
On October 3, 2014, the Court issued an Order consolidating related cases, appointing lead plaintiffs, and approving lead counsel. Lead Plaintiffs filed a consolidated complaint on October 31.
On August 5, 2015, the Court issued an Order granting in part and denying in part Defendants' motions to dismiss. Plaintiffs were given leave to filed an amended complaint.
On February 10, 2016, the parties filed notice of a partial settlement with certain Defendants. This Settlement was preliminarily approved by the Court on February 16. The Court granted final approval of this Settlement on June 24.