Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Abeona Therapeutics Inc. (ABEO) formerly known as PlasmaTech Biopharmaceuticals, Inc. (PTBI)

NEW YORK, Dec. 16, 2016 -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed on behalf of purchasers of: (1) PlasmaTech Biopharmaceuticals, Inc. securities (old symbol PTBI) from March 31, 2015 through June 19, 2015, both dates inclusive (the “PlasmaTech Class Period”); and/or (2) Abeona Therapeutics Inc. securities (Nasdaq:ABEO) from June 22, 2015 through December 9, 2016, both dates inclusive (the “Abeona Class Period” ) and together with the PlasmaTech Class Period, the (“Class Period”). 

Abeona Therapeutics Inc. was formerly known as PlasmaTech Biopharmaceuticals, Inc.  The lawsuit seeks to recover damages for Abeona investors under the federal securities laws for both class periods.

According to the Complaint, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the science behind Abeona’s proposed gene therapy treatment for Sanfilippo syndrome is unviable; (2) Steven H. Rouhandeh, Abeona’s Executive Chairman and Principal Executive Officer, previously worked in a high ranking position for a biotech promoter who was convicted of securities fraud and involved in manipulating biotech stocks; and (3) as a result, Defendants’ statements about Abeona’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On December 12, 2016, analyst firm Mako Research published a report on Abeona asserting, among other things, that Abeona’s science underpinning its gene therapy approach is unviable and Steven H. Rouhandeh previously worked in a position of authority at D. Blech & Co. — a firm named after now­-convicted felon David Blech.  On this news, shares of Abeona fell $0.70 per share or over 13% from its previous closing price to close at $4.45 per share on December 12, 2016, damaging investors.

If you wish to serve as lead plaintiff, you must move the Court no later than February 14, 2017.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].

Please visit our website at http://www.gme-law.com for more information about the firm.