Galectin Therapeutics Inc. (GALT)

[thefamilyman]

Under the original protocol, longs had reason to believe that the release of results from Cohort 2 would be a binary event with a strong probability to favor longs. The change in protocol potentially created a binary event favorable to the short side of the trade. The fact that this change was undisclosed magnified the effect resulting in a binary event that was catastrophic for longs. As soon as I saw that Cohort 2 presentation I knew I was screwed and I knew who did it.

GALT management obviously does not believe that they were legally required to publicize the change in protocol for Cohort 2 and they are probably right. There is also the question, "Did they intend to deceive because they wanted to manipulate the share price?" However, regardless of whether they are legally liable, they DID either inadvertently or intentionally "mislead the public."

In a normal situation, I would not invest in an early stage biotech where I did not trust management. However, in this case, there are two factors keeping me here.
1) I believe in the science.
2) I trust Patrick Cox and his "boss" is on the board of GALT.

But given that management has proved that they will withhold relevant information from investors, don't expect to see people lining up to buy shares in the near future.

You really took my comment out of context-I don't think GALT management ever misled the public, I said the law suits were based on the allegation that was the case. - biotech2010