CTI BioPharma Corp (NASDAQ: CTIC) Investor Securities Class Action Lawsuit 02/10/2016

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Company Name(s): 
CTI BioPharma
Case Name: 
CTI BioPharma Shareholder Class Action Lawsuit 02/10/2016
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: CTIC
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/10/2016
Class Period Begin: 
03/09/2015
Class Period End: 
02/09/2016
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
04/11/2016
Date Settled: 
10/24/2017
Settlement Amount: 
$20,000,000
Deadline to Participate in Settlement: 
02/20/2018
Summary: 

October 24, 2017 - The court preliminarily approved the settlement.

September 15, 2017 - Parties filed a stipulation of settlement.

January 9, 2017 - Defendants filed a motion to dismiss.

November 8, 2016 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased CTI BioPharma Corp (NASDAQ: CTIC) common shares between March 9, 2015 and February 9, 2016. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between March 9, 2015 and February 9, 2016.

September 2, 2016 - Lead plaintiff and lead counsel were appointed.

June 13, 2016 - Cases were consolidated.

May 19, 2016 - The case was transferred to the U.S. District Court for the Western District of Washington.

April 11, 2016 - Lead plaintiff motions were filed.

February 10, 2016 - An investor in shares of CTI BioPharma Corp (NASDAQ: CTIC) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by CTI BioPharma Corp in connection with certain allegedly false and misleading statements made in connection with the Company’s public offering on or about September 24, 2015 and between March 4, 2014 and February 9, 2016.

According to the complaint the plaintiff alleges on behalf of investors who purchased or otherwise acquired CTI BioPharma Corp (NASDAQ: CTIC) securities pursuant and/or traceable to the Company’s Registration Statement and Prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s public offering on or about September 24, 2015 (the “Offering”); and/or (2) between March 4, 2014 and February 9, 2016, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that Defendants made false and/or misleading statements and/or failed to disclose that the detrimental effect on survival of pacritinib, that the Company’s clinical trials demonstrated deaths associated with pacritinib usage, that the Company’s new drug application for pacritinib would likely be withdrawn, that, as such, the Company’s future revenues were impaired, that the company lacked adequate internal controls, and that, as a result of the foregoing, the Company’s financial statements and defendants’ statements about CTI Biopharma’s business, operations, and prospects, were materially false and misleading at all relevant times.

CTI BioPharma Corp reported that its annual Total Revenue rose from $34.68 million in 2013 to $60.08 million in 2014.

On February 8, 2016, CTI BioPharma Corp (NASDAQ: CTIC) announced that the Company received written communication from the U.S. Food and Drug Administration (FDA) on February 4, 2016, that the FDA has placed a partial clinical hold on the clinical studies being conducted under the Company's Investigational New Drug ("IND") application for pacritinib. CTI BioPharma Corp said that this clinical hold impacts part of the clinical work currently being conducted under the IND and will also affect planned clinical trials.

On February 9, 2016 CTI BioPharma Corp (NASDAQ: CTIC) provided an update regarding the clinical studies being conducted under the Company's Investigational New Drug ("IND") application for pacritinib.

CTI BioPharma Corp said that it received an oral communication from the FDA followed by a letter notifying the Company that the Company's IND for pacritinib has been placed on full clinical hold and that it has withdrawn its New Drug Application (NDA) until the Company has had a chance to review the safety and efficacy data from the PERSIST-2 Phase 3 clinical trial and decide next steps.

Shares of CTI BioPharma Corp (NASDAQ: CTIC) declined to as low as $0.25 per share on February 10, 2016.