Peregrine Securities Fraud Class Action Lawsuits Filed

Peregrine Securities Fraud Class Action Lawsuits Filed

By Kimberly Mirando

Several class action securities fraud lawsuits have been filed against Peregrine Pharmaceuticals, Inc., the manufacturer of the experimental lung cancer drug “bavituximab,” the biopharmaceutical company’s key product.

Plaintiffs in the Peregrine class action lawsuits accuse the company and certain officers and directors of violating federal securities laws by making false and misleading statements to investors about the effectiveness of bavituximab for use in treating certain types of lung cancer, making it impossible for shareholders to gain a meaningful or realistic understanding of the drug’s market prospects. As a result of these false statements, Peregrine’s stock traded at artificially high prices, resulting in losses for shareholders, the class action lawsuits say.

Each Peregrine securities fraud class action lawsuit is seeking to represent a proposed Class of shareholders who purchased Peregrine stock during different time periods, but they all point to the same September 24, 2012 disclosure by Peregrine that it had identified “major discrepancies” in the mid-stage Phase II lung cancer trial for bavituximab, and that investors should not rely on previously reported clinical data. After the announcement, Peregrine stock declined over 78% that same day.

Two days later, on September 26, Peregrine filed a Form 8-K with the SEC, which disclosed that the company had received a written notice of default from its lender. According to the Peregrine securities fraud class action lawsuit, the lender found Peregrine’s announcement of the major discrepancies in its cancer trial to be a material adverse change under the terms of the loan agreement. As a result, the lender accelerated the repayment of the loan and demanded full repayment for the outstanding amounts. On this news that Peregrine lacked sufficient capital to fund its operations long-term, Peregrine’s stock plummeted again to a one-day decline of 33%.

If you purchased Peregrine stock before September 26, 2012, you may be covered by one of the class action stock fraud lawsuits.

Were you a victim of stock fraud, securities fraud or investment fraud? You may have a case to file class action lawsuit against the parties responsible. Visit the Securities Fraud, Stock Fraud Investment Class Action Lawsuit Investigation for details.

Updated October 9th, 2012

All securities fraud class action and lawsuit news updates are listed in the Stocks & Securities section of Top Class Actions