NEW YORK, Sept. 6, 2011 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP is investigating claims on behalf of investors of Dendreon Corporation ("Dendreon" or the "Company") who purchased Dendreon shares from August 3, 2010 through August 3, 2011 (the "Class Period"). Such investors are advised to contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888-476-6529, ext. 350.
The investigation concerns whether defendants issued materially false and misleading statements regarding the Company's internal controls, and true business and financial condition. Specifically, the investigation focuses on whether Dendreon violated securities laws by, among other things, failing to disclose that: 1) physicians were not adopting the Company's new PROVENGE cancer drug as expected due to concerns about the high cost of the drug relative to its performance and insurance reimbursement; 2) sales forecasts based on physicians' immediate adoption of PROVENGE were dramatically inflated because of a lack of options to finance these expensive treatments; and (3) the Company did not have adequate systems of internal operational or financial controls.
On August 3, 2011, after the close of trading, Dendreon announced financial results which fell far below analysts' expectations. The Company also withdrew financial guidance for 2011. On this news, shares of Dendreon common stock fell over $22.00, or 60% per share, to reach a multi-year low of $13.39 per share.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.