According to the law firm press release, the lawsuit alleges defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that (1) Lion Biotechnologies, through its former CEO, engaged in a scheme to mislead investors by commissioning over 10 internet publications and 20 widely distributed emails promoting Lion Biotechnologies to potential investors that purported to be independent from the company when, in fact, they were paid promotions; (2) the former CEO engaged a notorious stock promotion firm to pay writers to publish articles about Lion Biotechnologies on investment websites as well as to coordinate the distribution of articles to thousands of electronic mailboxes; (3) the former CEO actively participated in the promotional work for Lion Biotechnologies and understood that the promotion firm was using writers who would not disclose that Lion Biotechnologies was indirectly compensating them for their publications; and (4) as a result, defendants’ public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
An amended complaint was filed on September 8, 2017. On November 3, Defendants filed Motions to Dismiss the amended Complaint. On February 15, 2018, the Court issued an Order granting in part and denying in part Defendants' Motions to Dismiss. Plaintiffs were given leave to file an amended Complaint. On September 28, the parties entered into a Stipulation of Settlement.