Robbins Arroyo LLP: Stemline Therapeutics, Inc. (STML) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Stemline Therapeutics, Inc. (“Stemline”) (NASDAQCM: STML) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Stemline securities between January 6, 2017 and February 1, 2017, for alleged violations of the Securities Exchange Act of 1934 by Stemline’s officers and directors. Stemline, a clinical stage biopharmaceutical company, focuses on the discovery, acquisition, development, and commercialization of proprietary oncology therapeutics in the United States. One of the company’s clinical stage product candidates is known as SL-401, which is designed to treat blastic plasmacytoid dendritic cell neoplasm (“BPDCN”).
Stemline Accused of Deceiving Investors about Patient Death
According to the complaint, on January 6, 2017, Stemline hosted a conference call during which Stemline officials revealed that the outcomes of both the phase 1/2 investigative sponsored study and the phase 2 trial of SL-401 were encouraging on the duration of response and the progression-free period, and that there had been consistent, manageable, and predictable safety profiles. Stemline further noted that the company was pleased with the outcome and viewed it as a favorable path forward for Stemline’s shareholders, the medical community at large, and BPDCN patients. On January 20, 2017, Stemline announced the price of its public offering of 4.5 million shares of its common stock at $10.00 per share, with expected gross proceeds of $45 million. However, the complaint alleges that Stemline officials deceived the investing public regarding Stemline’s prospects and business and artificially inflated the prices of Stemline securities.
On February 2, 2017, TheStreet published an article revealing that SL-401 had been tied to three patient deaths from capillary leak syndrome. The report noted that the third and most recent patient death is troubling because the death came after Stemline had already increased safety monitoring and added new dosing rules to reduce the incidence and severity of this side effect. The report called into question whether Stemline had the risk of fatal capillary leak syndrome under control. On this news, Stemline’s stock fell $4.15 per share, or approximately 42%, to close at $5.60 per share on February 2, 2017.
Stemline Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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