AspenBio Pharma, Inc. Under Long Term Investor Investigation

If you are a current long term investor in AspenBio Pharma, Inc. (NASDAQ:APPY) common stock, including those who purchased also prior to February 2007 and presently continue to hold those shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
AspenBio Pharma
Affected Securities: 
NASDAQ: APPY

A lawsuit on behalf of investors in AspenBio Pharma who purchased APPY shares during the period between February 22, 2007 and July 19, 2010 alleging securities laws violations by AspenBio Pharma, Inc. was filed last month. Meanwhile an investigation on behalf of current long term investors in AspenBio Pharma, Inc. (NASDAQ:APPY), including those who purchased also prior to February 2007 and presently continue to hold those APPY shares, over possible breaches of fiduciary duty was announced.

According to the complaint filed in the U.S. District Court the plaintiff alleges on behalf of those who purchased the common stock of AspenBio Pharma, Inc. (NASDAQ:APPY) between February 22, 2007 and July 19, 2010 that AspenBio Pharma, Inc violated federal securities laws by issuing between February 22, 2007 and July 19, 2010, materially false and misleading statements about the effectiveness of AppyScore as a test to diagnose appendicitis.

The investigation by a law firm on behalf of current AspenBio Pharma long term investors, including those who purchased also prior to February 2007 and presently continue to hold those APPY shares, focuses on potential breaches of fiduciary duty by certain officers and directors of AspenBio Pharma, Inc. in connection with the alleged securities laws violations.

According to the above stated complaint, defendants were aware or recklessly disregarded information that AppyScore was not effective in detecting appendicitis as it could not differentiate between appendicitis and other medical conditions. According to the complaint, this adverse information caused AspenBio Pharma’s stock (APPY) to drop, causing investors substantial losses. During 2007 AspenBio Pharma, Inc. shares traded as high as $15 per share and during 2008 at almost $8.50 per share. In 2009 AspenBio Pharma, Inc. shares started to hold value and traded on January 16, 2009 at $7.63 per share, before declining to as little as $1.54 per share on January 23, 2009. Over the course of the next 18 months AspenBio Pharma shares were able to regain value to almost $4per share. But APPY shares fell from $3.38 per share on June 04 to $1.23 on June 09 after AspenBio Pharma announced on June 07, 2010 that it will perform additional data analysis on its recently completed pivotal clinical trial and as a result, the submission of its 510(k) application for AppyScore with the Food and Drug Administration will not occur as previously anticipated by late June 2010. Then on July 19, 2010 07/19/2010 -- AspenBio Pharma, Inc. (NASDAQ: APPY) reported the results from its recently completed AppyScore ELISA-based pivotal clinical trial. On July 20, 2010, AspenBio Pharma, Inc. (NASDAQ:APPY) fell to $0.689 per share. Recently AspenBio Pharma, Inc. shares (NASDAQ: APPY) traded at $0.40 per share.