Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Cellular Biomedicine Group, Inc.
Oklahoma City, OK (April 24, 2015) – On 4/21/15, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against Cellular Biomedicine Group, Inc. (NASDAQ: CBMG). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is June 18, 2014 through April 7, 2015. More specifically, this litigation was filed because the Company filed to disclosed that: (1) the Company achieved its valuation of $500 million by using paid stock promoters, yet did not disclose the use of such promoters in its regulatory filings pursuant in violation to Section 17(b) of the Securities Act of 1933; (2) the Company’s "Car-T" technology had experienced patient deaths and lacked any meaningful valuation; and (3) as a result of the above, the Company’s financial statements were materially false and misleading during the Class Period.
On April 7, 2015, a report was published on Seekingalpha.com, alleging that the Company was engaged in an enormous fraudulent scheme to mislead investors and that the Company did not have any material financial value. On this news, CBMG securities declined to close at $25.22 per share on April 7, 2015.
Plaintiff seeks to recover damages on behalf of all Cellular Biomedicine Group, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, June 22, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Fri, April 24, 2015
by Robin Hester filed under