Case Page

 

Case Status:    ONGOING    
On or around 11/09/2016 (Ongoing date of last review)

Filing Date: February 10, 2016

According to the law firm press release, CTI is a biopharmaceutical company which provides medical research services, and develops clinical treatment and drugs for various cancers. One of the Company’s most advanced pipeline products was pacritinib, a treatment for myleofibrosis.

On February 8, 2016, pre-market, CTI disclosed that it had been alerted by the U.S. Food and Drug Administration (FDA) that the FDA had placed a partial hold on clinical studies of CTI's primary product, pacritinib. The FDA has recommended that CTI amend its procedures for randomized studies to disallow crossover to pacritinib, provide specific notifications, adjust certain statements in both the investigator's brochure and informed consent documents and other actions. Upon this news, CTI stock fell $0.68 per share, or over 60%, to close at $0.44 on February 8, 2016, on unusually heavy volume.

On February 9, 2016, the Company issued a press release announcing that the FDA had placed a full clinical hold on pacritinib, and required that all patients currently on pacritinib must discontinue pacritinib immediately. The Company further reported that it had withdrawn the new drug application for pacritinib. On this news the Company’s shares fell 40%, or $0.20 per share, on February 10, 2016, on unusually heavy volume of over 15 million shares.

The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) the detrimental effect on survival of pacritinib; (2) that the Company’s clinical trials demonstrated deaths associated with pacritinib usage; (3) that the Company’s new drug application for pacritinib would likely be withdrawn; (4) that, as such, the Company’s future revenues were impaired; (5) that the company lacked adequate internal controls; and (6) that, as a result of the foregoing, the Company’s financial statements and Defendants’ statements about CTI Biopharma’s business, operations, and prospects, were materially false and misleading at all relevant times.

On May 19, 2016, this case was transferred to the Western District of Washington. Then on June 13, the transferred case was consolidated into lead case 16-CV-00216.

On September 2, 2016, the Court issued an Order appointing Lead Plaintiff and Counsel.

A consolidated complaint was filed on November 8, 2016.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Biotechnology & Drugs
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CTIC
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. Washington
DOCKET #: 16-CV-01044
JUDGE: Hon. Paul A. Engelmayer
DATE FILED: 02/10/2016
CLASS PERIOD START: 03/04/2014
CLASS PERIOD END: 02/09/2016
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Prongay & Murray LLP
    1925 Century Park East, Suite 2100 , Glancy Prongay & Murray LLP, CA 90067
    (310) 201-9150 (310) 432-1495 ·
No Document Title Filing Date
COURT: W.D. Washington
DOCKET #: 16-CV-00216
JUDGE: Hon. Paul A. Engelmayer
DATE FILED: 11/08/2016
CLASS PERIOD START: 03/09/2015
CLASS PERIOD END: 02/09/2016
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (San Diego)
    12481 High Bluff Drive, Suite 300, Bernstein Litowitz Berger & Grossmann LLP (San Diego), CA 92130
    858.793.0070 858.793.0323 · blbg@blbglaw.com
  2. Breskin Johnson Townsend PLLC
    1111 Third Avenue, Suite 2230, Breskin Johnson Townsend PLLC, WA 98101
    206.652.8660 206.652.8660 ·
No Document Title Filing Date