Cell Therapeutics, Inc Hit by Investor Lawsuit

According to the complaint the plaintiff alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s business and prospects. Specifically, the complaint alleges that defendants failed to disclose: (a) that the Special Protocol Assessment (“SPA”) with the United States Food and Drug Administration (“FDA”) for pixantrone was invalidated in March 2008; (b) that the Company’s pixantrone study enrolled a large number of patients who did not suffer from aggressive non-Hodgkin’s lymphoma; (c) that the Company’s pixantrone drug was cardiotoxic; and (d) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about pixantrone and its prospects.

On February 8, 2010, the FDA posted its assessment of pixantrone in advance of its February 10, 2010 advisory meeting. With regard to the regulatory history of pixantrone, the FDA Briefing Document stated, among other things, that the Company’s SPA was invalidated in March 2008 and that the Company’s pixantrone study results were not meeting the FDA’s standards for approval.

Cell Therapeutics, Inc. shares (CTIC) split in 2008 and traded recently at $0.997 per share, down from its 52weekHigh of $2.23 per share. CTIC reached an unbelievable $2940 per share during the dotcom bubble in 2000, and continued to fall to approximately $1000 per share in 2001 with an additional substantial decline in 2002 from $1000 to $300 per share. Since 2002 CTIC has lost ground a traded before the financial crisis in 2008 under $5 per share.