Spectrum Pharmaceuticals, Inc. Sued by Shareholders
Robbins Arroyo LLP announces that purchasers of Spectrum Pharmaceuticals, Inc. (NASDAQ: SPPI) common stock have filed a complaint in the U.S. District Court for the District of Nevada. The complaint charges the company and certain of its officers and directors with violating the Securities Exchange Act of 1934 between August 8, 2012, and March 12, 2013 (the “Class Period”).
Spectrum Officials Accused of Misrepresenting to Shareholders the Sales Prospects of Cancer Drug FUSILEV
The complaint alleges that Spectrum, a biotechnology company with fully integrated commercial and drug development operations and a focus in hematology and oncology, and certain of its officers and directors issued a series of materially false and misleading statements to investors regarding the sales prospects of its oncology drug, FUSILEV, a drug intended as a treatment for advanced metastatic colorectal cancer. Specifically, the complaint alleges that throughout the Class Period, company officials misrepresented and failed to disclose the potential negative impact on sales of FUSILEV presented by the increased availability of generic drug Leucovorin. While Spectrum officials issued statements downplaying the potential impact of generic alternatives, the company’s stock traded at artificially inflated prices, reaching a high of $13.05 per share on September 18, 2012.
Spectrum Stock Price Drops Following Its 2013 Decreased Revenue Guidance: Concerned Shareholders Respond with Lawsuit
On March 12, 2013, the company issued a press release announcing that sales of its drug, FUSILEV, would be significantly lower during 2013 due to the recent stabilization of the folate analog market and the increased availability of generic drug Leucovorin. As a result, the company decreased its 2013 revenue guidance from approximately $300 million to as low as $160 million. In response to this news, Spectrum shares declined $4.64 per share, or approximately 37%, closing at $7.79 per share on March 13, 2013.
Robbins Arroyo LLP highlights that concerned Spectrum shareholders have several potential options available to them.
Spectrum shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Darnell R. Donahue at (800) 350-6003.