Settled: June 13, 2016
On October 22, 2015, Labaton Sucharow announced a $7 million settlement with Spectrum Pharmaceuticals (Spectrum), which was finally approved on June 13, 2016. The Firm was appointed sole lead counsel in this securities class action against Spectrum on March 20, 2014.
Spectrum Pharmaceuticals, Inc. is a biopharmaceutical company located in Irvine, California. On March 12, 2013, after the market closed, Spectrum issued a press release with disappointing full-year 2013 revenue outlook. The company forecasted 2013 revenues in the range of $160 to $180 million compared to analyst expectations of $297 million. Spectrum reported that sales of FUSILEV would be dropping significantly due to anticipated changes in ordering patterns for FUSILEV based upon recent communications with customers. The company acknowledged that hospitals were shifting to generics even though end-user demand for FUSILEV remained stable in clinics. On this news, Spectrum's stock price fell $4.64 per share, or 37.33 percent, to close at $7.79 per share on March 13, 2013.
Lead plaintiff alleges that Spectrum made false and misleading statements about the prospects for FUSILEV, one of the three drugs that the company markets which accounted for approximately 70 percent of Spectrum's 2012 total revenues. The action also alleges that, during the class period, the company artificially inflated its stock price by making positive statements about the demand for FUSILEV when it knew that a cheaper competing generic drug, leucovorin, was cutting into its market share.
On March 27, 2015, the court denied the defendants' motion to dismiss in its entirety and ruled that lead plaintiff adequately pled scienter. The court stated in its ruling, "The complaint alleges sufficient facts that, when considered as a whole, create a strong inference that the defendants acted with an intent to deceive or, at a minimum, with a deliberate recklessness as to the possibility of misleading investors."
The case is In re Spectrum Pharmaceuticals, Inc. Securities Litigation, No. 13-CV-00433 (D. Nev.). Lead plaintiff is Arkansas Teacher Retirement System. The defendant is Spectrum Pharmaceuticals, Inc.
A Settlement Hearing was held on June 13, 2016 at 10:00 a.m. in Courtroom 6B of the Lloyd D. George U.S. Courthouse, 333 Las Vegas Boulevard South, Las Vegas, NV 89101. The deadline for objecting to the settlement or seeking exclusion from the class has passed.
Submit Proof of Claim
If you purchased or acquired publicly traded Spectrum common stock (including through the exercise of warrants or options) and/or call options, and/or said publicly traded Spectrum put options, during the period from August 8, 2012 through March 12, 2013, inclusive (the "Class Period"), you may be entitled to a payment from the proposed settlement.
To be eligible for a payment, you must submit a Proof of Claim form by June 9, 2016 in accordance with the instructions set forth in the Notice.
If you have questions about the settlement, please contact Labaton Sucharow at firstname.lastname@example.org or 1-888-219-6877, or contact the Claims Administrator, Analytics, at 1-844-449-3580.