Northwest Biotherapeutics Inc Case 08/13/2007
According to a press release dated August 13, 2007, the complaint charges Northwest Biotherapeutics and certain of its officers and directors with violations of the Exchange Act. Northwest Biotherapeuticsis a development stage biotechnology company focused on discovering, developing, and commercializing immunotherapy products that safely generate and enhance immune system responses to effectively treat cancer. NWBO has two basic technology platforms applicable to cancer therapeutics; dendritic cell-based cancer vaccines, which are called DCVax(R) and monoclonal antibodies for cancer therapeutics.
The complaint alleges that during the Class Period, Northwest Biotherapeutics issued materially false and misleading statements. Northwest Biotherapeutics issued a press release on July 9, 2007 entitled “World’s First Therapeutic Vaccine for Brain Cancer Commercially Available to Patients in Switzerland.” The release stated that Northwest Biotherapeutics received an “authorization for use” from the Swiss authorities and that “DCVax-Brain is the first commercially available therapeutic vaccine for such cancers. The Company intends to begin making the product available to patients in Q3 2007.” A week later, on July 16, 2007, Northwest Biotherapeutics issued another press release explaining that the authorization it received was really just for import/export purposes, and was conditional even for those limited purposes. Northwest Biotherapeutics stated that the Swiss government has not yet reviewed DCVax for neither safety nor efficacy. Northwest Biotherapeutics’s stock which traded up from $2.30 per share to as high as over $7 per share during the Class Period has since dropped to below $3 per share.