PHILADELPHIA, PA / ACCESSWIRE / January 30, 2023 / Berger Montague informs investors that the firm has filed a securities class action in the United States District Court for the Southern District of New York against Spectrum Pharmaceuticals, Inc. ('Spectrum') (NASDAQ:SPPI). This action is captioned Luis Carneiro v. Spectrum Pharmaceuticals, Inc., et al., Case No. 1:23-00767 (the 'Carneiro Action') and is brought on behalf of investors who purchased Spectrum common stock between July 27, 2020 and September 22, 2022, inclusive (the 'Class Period').
There are related class actions pending against Spectrum in the same jurisdiction. The first-filed action issued a notice of its filing pursuant to the federal securities laws, which triggered the deadline of February 3, 2023, for any investors who purchased Spectrum common stock to seek to be appointed as a lead plaintiff representative of the class. The filing of the Carneiro Action does not change the February 3, 2023 lead plaintiff deadline.
Spectrum is a biopharmaceutical company focused on acquiring, developing, and commercializing novel and targeted oncology therapies.
The complaint in the Carneiro Action alleges that, throughout the Class Period, defendants made materially false and misleading statements and/or omissions concerning its drug candidate poziotinib, or 'pozi.' Defendants were conducting a Phase 2 clinical trial called ZENITH20. The ZENITH20 trial was intended to evaluate the anti-tumor effects, safety, and tolerability of pozi in patients with locally advanced or metastatic non-small cell lung cancer that were previously treated. Additionally, the complaint alleges that during the Class Period, Defendants represented that the safety and efficacy data from the ZENITH20 trial were positive and, based on those positive results, had initiated a required confirmatory phase 3 study.
The truth began to emerge on September 20, 2022, when the U.S. Food and Drug Administration ('FDA') released a briefing document ahead of its scheduled September 22, 2022 Oncologic Drugs Advisory Committee ('ODAC') meeting regarding poziotinib. In sharp contrast to Defendants' representations that the ZENITH20 data was positive and that the required confirmatory Phase 3 trial was initiated and patients were being randomized, the briefing document identified material negative concerns about the efficacy and safety data supporting the pozi new drug application, and revealed that Defendants' Phase 3 confirmatory trial had not enrolled a single patient. Following this news, the price of Spectrum's common stock declined from a closing price on September 19, 2022 of $1.06 per share, to close at $0.66 per share on September 20, 2022, a decrease of $0.40 per share or over 37%.
On September 22, 2022, Spectrum issued a press release concerning the FDA ODAC's meeting that stated, '[t]he committee voted 9-4 that the current benefits of poziotinib did not outweigh its risks.' Following this news, shares of Spectrum common stock fell from a closing price on September 22, 2022 of $0.63 per share to $0.43 at close on September 23, 2022, a decrease of $0.20 or approximately 31%.
Investors who purchased or acquired Spectrum common stock during the Class Period may, no later than February 3, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (215) 875-3093, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://investigations.bergermontague.com/spectrum-pharmaceuticals-inc/
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
James Maro, Senior Counsel
Andrew Abramowitz, Senior Counsel
SOURCE: Berger Montague
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