Stemline investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Stemline is a clinical-stage biopharmaceutical company, which focuses on the discovery, acquisition, development and commercialization of proprietary oncology therapeutics in the United States. The Company is developing “SL-401,” a targeted therapy directed to the interleukin-3 receptor (IL-3R), which is in Phase II clinical trial for advanced hematologic cancers.
On January 20, 2017, Stemline announced the pricing of a public offering of common stock. Specifically, the Company announced that it had priced an underwritten public offering of 4.5 million shares of Stemline common stock at a price of $10.00 per share, for gross proceeds to the Company of $45 million.
Less than two weeks later, on February 2, 2017, Stemline provided an update “on its ongoing pivotal Phase 2 trial” and disclosed that, “[o]n January 18, the Company received a report that a patient death had occurred. The patient had developed capillary leak syndrome (CLS), a known, sometimes fatal, and well-documented side effect of SL-401.” Following this news, shares of the Company’s common stock declined $4.15 per share, or over 42.5%, to close on February 2, 2017 at $5.60 per share, on unusually heavy trading volume.
The complaint alleges that Stemline and certain of its executive officers violated the federal securities laws by making false and misleading statements and/or failing to disclose that a cancer patient in a Stemline clinical trial tied to SL-401 died from a severe side effect on January 18, 2017. Additionally, the complaint alleges that, as a result of the foregoing, the defendants’ statements about Stemline’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times
If you are a member of the class described above, you may no later than April 4, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
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 their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com.
Kessler Topaz Meltzer & Check, LLP
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