Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Spectrum Pharmaceuticals, Inc.
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http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130315:nBw146517a 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 email@example.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, FUSILEV® and ZEVALIV®. 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 firstname.lastname@example.org Copyright Business Wire 2013
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