Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Stemline Therapeutics, Inc.
Oklahoma City, OK (February 7, 2017) – On February 3, 2017, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Stemline Therapeutics, Inc. (NASDAQ: STML). 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 January 19, 2017 through February 1, 2017. More specifically, this litigation was filed because Defendants made false and/or misleading statements and/or failed to disclose that: (1) a cancer patient in a Stemline clinical trial tied to SL-401 died from a severe side effect on January 18, 2017; and (2) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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 to close on February 2, 2017 at $5.60 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of all Stemline Therapeutics, 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 Tuesday, April 4, 2017 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 Tue, February 7, 2017
by Nancy Beatty filed under