Galena Biopharma fka GALE

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Galena Biopharma Facing Trials For Cheating Investors

Boston, MA 04/21/2014 (wallstreetpr) – Galena Biopharma Inc (NASDAQ:GALE) is a publicly operated pharmaceutical company in the U.S. with its primary focus on cancer therapy. The company is currently facing an investigation from the US Securities and Exchange Commission. It has been charged with the allegations of using false and unlawful methods for creating hype and effectively raising its share price value in the market.

Payments made to PR firm

SEC is investigating the role of an investor relations firm in Galena’s rise of stock prices. It is claimed that the company was secretly paying an outside PR firm an amount to promote it. The firm being called ‘Dream Team’ was writing positive articles and giving feedbacks praising and promoting the company. The articles were written under aliases .This led to an increasing popularity among the people and thus created a demand for its shares. The stock price of Galena showed a significant increase in its share value from $2 to $4. The company leveraged the opportunity and made a huge profit by selling its thousands of shares and making million dollars profits. Hagens Berman Sobol Shapiro LLP, a law firm for investor’s law class is currently investigating the charges against Galena.

Galena denies charges

The company is facing five law cases although it continues to reject all the allegations of creating a buzz for demand of its share. Four of these five cases fall under the jurisdiction of Federal Court for violating the shareholder protection law. The last day for filing lead plaintiff is May 5, 2014 in the securities fraud class action. Earlier the company had claimed of huge advancements that are now overcast by the investigations. The company has also incurred a loss of $48.5 million in the last quarter of 2013. On a single share, the company suffered a loss of $0.46.

Persons with information about Galena can have an advantage from SEC Whistle blower program. Under the program, the person who claims to provide non-public original information can get up to 30% of recovered amount by SEC.