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Rolontis False Claims Overview:
- Who: Spectrum Pharmaceutical investors have filed a class action lawsuit against the company.
- Why: The investors claim Spectrum violated the Securities Exchange Act.
- Where: The lawsuit was filed in Nevada.
Spectrum Pharmaceuticals made false and misleading claims about the quality and integrity of its scientific data and failed to disclose adverse facts about the efficacy of its drug Rolontis, a new class action lawsuit alleges.
The class action lawsuit was filed in Nevada by investors in Spectrum Pharmaceuticals who allege that it violated the Securities Exchange Act by making false statements about Rolontis, artificially inflating share prices.
Rolontis is a novel long-acting white blood cell-stimulating medicine that allegedly treats chemotherapy-induced neutropenia.
The class action lawsuit alleges that Spectrum had deficient controls and procedures in place with the production of the drug, and that it knew about deficiencies in the drug that would decrease its likelihood of approval by the U.S. Food and Drug Administration. Therefore, the claim alleges, Spectrum materially overstated Rolontis’ approval prospects, making false and misleading public statements.
On August 6, Spectrum received a letter from the FDA that cited deficiencies related to Rolontis’ manufacturing and indicated that a reinspection of Spectrum’s manufacturing facility would be required. On the news, the price of Spectrum shares fell $0.70 per share, or 21.54 percent, to close at $2.55 per share on August 6, 2021.
A number of large public companies are currently facing Securities Act class action lawsuits. This month, Robinhood was hit with legal action by an investor who claimed the company failed to act in investors’ best interests by employing a payment for order flow revenue system that denied customers the best possible trading prices.
In August, PayPal was also hit with a class action lawsuit for allegedly misleading investors by failing to reveal in a timely manner that it was under investigation for its disclosure controls and procedures related to the company’s PayPal Credit and debit cards.
Have you ever invested in a company that has violated the SEC? Let us know your experience in the comments section!
The Spectrum investors are represented by Bernstein Liebhard LLP.
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