Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Spectrum Pharmaceuticals, Inc.

Thu Mar 14, 2013 10:20pm EDT

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SAN DIEGO--(Business Wire)--
Robbins Geller Rudman & Dowd LLP ("Robbins Geller")
(http://www.rgrdlaw.com/cases/spectrum/) today announced that a class action has
been commenced in the United States District Court for the District of Nevada on
behalf of purchasers of Spectrum Pharmaceuticals, Inc. ("Spectrum")
(NASDAQ:SPPI) common stock during the period between August 8, 2012 and March
12, 2013, inclusive (the "Class Period"). 

If you wish to serve as lead plaintiff, you must move the Court no later than 60
days from today. If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact plaintiffs`
counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or
via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a
copy of the complaint as filed or join this class action online at
http://www.rgrdlaw.com/cases/spectrum/. Any member of the putative class may
move the Court to serve as lead plaintiff through counsel of their choice, or
may choose to do nothing and remain an absent class member. 

The complaint charges Spectrum and certain of its officers and directors with
violations of the Securities Exchange Act of 1934. Spectrum is a biotechnology
company with integrated commercial and drug development operations with a focus
on hematology and oncology. In the United States, it markets two oncology drugs,
FUSILEVĀ® and ZEVALIVĀ®. 

FUSILEV is a folate analog used for the treatment of patients with advanced
metastatic cancer. The key competitive formulation to FUSILEV was a generic
drug, leucovorin. In 2008 and 2009, leucovorin supplies declined as one
manufacturer reported low stockpiles due to increased demand and another stopped
production due to expansion of its facility. These shortages of leucovorin
represented a huge opportunity for Spectrum, as it was able to increase its
sales of FUSILEV. 

The complaint alleges that throughout the Class Period, defendants violated the
federal securities laws by disseminating false and misleading statements to the
investing public in connection with FUSILEV, continually dismissing concerns
that sales of FUSILEV would be adversely affected by increased supplies of
leucovorin and concealing the impact that the increased availability of
leucovorin would have on FUSILEV sales. As a result of defendants` false
statements, Spectrum`s stock traded at artificially inflated prices during the
Class Period, reaching a high of $13.05 per share on September 18, 2012. 

On March 12, 2013, after the market closed, Spectrum issued a press release
providing its full-year revenue outlook. The Company reported that sales of
FUSILEV would be dropping significantly due to anticipated changes in ordering
patterns for FUSILEV, which were due in part to the recent stabilization of the
folate analog market. Additionally, the Company forecast full-year 2013 revenues
in the range of $160 to $180 million, much lower than analysts` revenue
expectations of $297.33 million for 2013. On this news, Spectrum`s stock
plummeted $4.64 per share to close at $7.79 per share on March 13, 2013, a
one-day decline of 37% on volume of 22.5 million shares. 

According to the complaint, the true facts, which were known by the defendants
but concealed from the investing public during the Class Period, were as
follows: (a) once the availability of leucovorin increased, Spectrum`s sales of
FUSILEV would plummet; (b) the purported advantages of FUSILEV over leucovorin
would not be sufficient for clinics and hospitals to continue to opt for the
more expensive FUSILEV once leucovorin was available in larger quantities; and
(c) based upon the above, defendants lacked a reasonable basis for their
positive statements about the Company and its revenue and earnings during the
Class Period. 

Plaintiffs seek to recover damages on behalf of all purchasers of Spectrum
common stock during the Class Period (the "Class"). The plaintiffs are
represented by Robbins Geller, which has expertise in prosecuting investor class
actions and extensive experience in actions involving financial fraud. 

Robbins Geller represents U.S. and international institutional investors in
contingency-based securities and corporate litigation. With nearly 200 lawyers
in nine offices, the firm represents hundreds of public and multi-employer
pension funds with combined assets under management in excess of $2 trillion.
The firm has obtained many of the largest recoveries in history and has been
ranked number one in the number of shareholder class action recoveries in MSCI`s
Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm`s
recoveries have averaged 35% above the median for all firms over the past seven
years (2005-2011). Please visit http://www.rgrdlaw.com for more information.

Robbins Geller Rudman & Dowd LLP
Darren Robbins
800-449-4900 or 619-231-1058
djr@rgrdlaw.com

Copyright Business Wire 2013

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