Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Cellular Biomedicine Group, Inc. (CBMG)


NEW YORK, Apr. 22, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities that purchased the securities of Cellular Biomedicine Group Inc. (“Cellular” or the “Company”) (Nasdaq:CBMG) between June 18, 2014 and April 7, 2015, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

Cellular Biomedicine Group Inc., is a biomedicine company that develops treatments for cancerous and degenerative diseases in Greater China. It focuses on developing and marketing cell-based therapies to treat serious chronic and degenerative diseases, such as cancer, osteoarthritis, tissue damage, various inflammatory diseases, and metabolic diseases.

The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s operations, business prospects and compliance with policies.   The Complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company achieved its valuation of $500 million by using paid stock promoters, yet did not disclose the use of such promoters in its regulatory filings pursuant in violation of the Securities Act of 1933; (2) the Company’s "Car-T" technology had experienced patient deaths and lacked any meaningful value; and (3) as a result of the above, the Company’s financial statements were materially false and misleading during the Class Period.

On April 7, 2015, a report was published on Seekingalpha.com, alleging that the Company was engaged in an enormous fraudulent scheme to mislead investors and that the Company did not have any material financial value.   On this news, CBMG securities declined $7.00 per share, or over 21.7%, to close at $25.22 per share on April 7, 2015.

If you wish to serve as lead plaintiff, you must move the Court no later than June 22, 2015.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

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