According to the law firm press release, Galectin is a development stage company engaged in the research and development of therapies for fibrotic disease and cancer. The Company’s lead product candidates include GR-MD-02 to treat non-alcoholic steatohepatitis or NASH, a disease that leads to fatty buildup in the liver and can potentially lead to cirrhosis and/or liver 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 Company’s business and prospects. As a result of defendants’ false statements, Galectin’s stock traded at artificially inflated prices during the Class Period, reaching a high of $18.30 per share on February 27, 2014.
On July 24, 2014, Emerging Growth Corp. (“Emerging Growth”) disseminated a press release through Accesswire stating that Galectin was “nipping at [the] heels” of its competitors and “actually may be closer than what first appears with a Phase 1 trial because of the potential to treat fatty liver disease even once it has progressed.” Then, on July 28, 2014, an article on SeekingAlpha.com claimed that Galectin had “strong ties to stock promoters” engaging in a misleading brand awareness campaign aimed at boosting its stock price. The same day, a separate article on TheStreet.com revealed that Emerging Growth, through its parent company TDM Financial, a penny-stock promotions firm, was the investor relations and marketing company Galectin was paying for misleading promotional campaigns to entice investors to buy its stock. On this news, Galectin’s stock fell $8.84 per share to close at $5.70 per share on July 29, 2014, a one-day decline of nearly 61% on volume of nearly 7.7 million shares.
On January 6, 2015, this case was transferred to the Northern District of Georgia.
On March 24, 2015, the Court issued an Order appointing Lead Plaintiff and approving Lead Counsel.
On December 30, 2015, the Court issued an Order dismissing this case with prejudice.