Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against CTI BioPharma Corp. (CTIC)

NEW YORK, Feb. 12, 2016 -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against CTI BioPharma Corp. (“CTI” or the “Company”) (Nasdaq:CTIC).  The class action is filed in United States District Court for the Western District of Washington on behalf of a class consisting of all persons or entities who purchased CTI securities: (1) pursuant and/or traceable to the Company’s Registration Statement and Prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s public offering on or about September 24, 2015 (the “Offering”); and/or (2) between March 4, 2014 and February 9, 2016, inclusive (the “Class Period”).  This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).

The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose: (1) that pacritinib was attributed as a potential cause in the death and injuries of several patients; (2) that the Company’s clinical trials showed the dangers of pacritinib usage; (3) that the Company’s new drug application for pacritinib would likely be withdrawn; (4) that, as such, the Company’s future revenues were impaired; (5) that the Company lacked adequate internal controls; and (6) that, as a result of the foregoing, the Company’s financial statements and Defendants’ statements about CTI’s business, operations, and prospects, were materially false and misleading at all relevant times.

On this news, shares of CTI declined $0.68 per share, or over 60% to close at $0.44 on February 8, 2016, on unusually heavy volume.  On February 9, 2016, the Company issued a press release announcing that the FDA had placed a full clinical hold on pacritinib.  On this news the Company’s shares fell over 40% during intraday trading on February 10, 2016, on unusually heavy volume of over 15 million shares.

If you wish to serve as lead plaintiff, you must move the Court no later than April 11, 2016.  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].

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