NEW YORK, April 5, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Spectrum Pharmaceuticals, Inc. ("Spectrum" or the "Company") (Nasdaq:SPPI) and certain of its officers. The class action filed in United States District Court, District Of Nevada, and docketed under 2:13-cv-00502, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Spectrum between August 8, 2012 and March 12, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Spectrum securities during the Class Period, you have until May 24, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Spectrum is a biotechnology company with integrated commercial and drug development operations with a focus on hematology and oncology in the United States. Spectrum primarily markets two oncology drugs, FUSILEV® (levoleucovorin) ("FUSILEV") and ZEVALIN.
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, and operations. Specifically, throughout the Class Period, defendants violated the federal securities laws by disseminating false and misleading statements to the investing public in connection with Spectrum's oncology drug FUSILEV, a folate analog used for the treatment of patients with advanced metastatic colorectal cancer, and concealed the impact that the increased availability of a competing generic drug (leucovorin) would have on sales of FUSILEV. As a result of defendants' false statements, Spectrum's stock traded at artificially inflated prices during the Class Period, reaching a high of $13.05 per share on September 18, 2012.
On March 12, 2013, after the market closed, Spectrum issued a press release providing its full-year revenue outlook. The Company reported that sales of FUSILEV, the Company's highest revenue-generating drug, would be dropping significantly due to anticipated changes in ordering patterns for FUSILEV, due in part to the recent stabilization of the folate analog market. The Company reported sales would be approximately $10 to $15 million for the first quarter of 2013, and approximately $80 to $90 million for the fiscal year 2013. Additionally, the Company forecast full-year 2013 revenues in the range of $160 to $180 million, much lower than analysts' revenue expectations of $297.33 million for 2013.
On this news, Spectrum's stock plummeted $4.64 per share, to close at $7.79 per share on March 13, 2013, a one-day decline of 37% on volume of 22.5 million shares.
The Pomerantz Firm, with offices in New York, Chicago, and San Diego, 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.