WASHINGTON, March 10, 2016 (GLOBE NEWSWIRE) -- Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether CTI BioPharma Corp. (“CTI” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 or violated Section 11 of the Securities Act of 1933.
Class action lawsuits were filed in the U.S. District Court for the Southern District of New York and in the Western District of Washington by other law firms on behalf of purchasers of the common stock of CTI BioPharma Corp. (NASDAQ:CTIC) between March 4, 2014 and February 9, 2016, inclusive (the “Class Period”), and those who purchased CTI securities pursuant or traceable to the Company’s September 24, 2015 offering.
The complaints allege that CTI BioPharma Corp. and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) pacritinib, a drug being developed by CTI to treat myelofibrosis, was attributed as a potential cause in the death and injuries of several patients; (2) the Company’s clinical trials showed the dangers of pacritinib usage; (3) the Company’s new drug application for pacritinib would likely be withdrawn; (4) as such, the Company’s future revenues were impaired; (5) the Company lacked adequate internal controls; and (6) as a result of the foregoing, the Company’s financial statements and Defendants’ statements about CTI’s business, operations, and prospects, were materially false and misleading.
On February 8, 2016, CTI announced that the U.S. Food and Drug Administration had placed a partial clinical hold on pacritinib because of excess mortality and other adverse events in patients treated with pacritinib. After the market close on February 9, the Company reported that the FDA had placed a full-clinical hold on pacritinib and that CTI had withdrawn its new drug application for the drug. The price of CTI shares fell from $1.12 to $0.44 on February 8, and from $0.50 to $0.30 on February 10.
Cohen Milstein encourages all investors who purchased CTI common stock between March 4, 2014 and February 9, 2016, and those who purchased CTI securities pursuant or traceable to the Company’s September 24, 2015 offering, or former employees with information concerning this matter, to contact the firm.
If you are a CTI shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as lead plaintiff, you must move the Court no later than April 11, 2016 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over two billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Ryan Marchbank
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Suite 500 East
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; rmarchbank@cohenmilstein.com
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