Stemline Therapeutics, Inc.
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. (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 pursuant to Stemline’s secondary public offering on or about January 20, 2017 (the “Offering”) and/or publicly traded on the open market between January 19, 2017 and February 1, 2017, for alleged violations of the Securities Act of 1933 and 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.
Stemline Accused of Hiding Patient Death in Its Drug Trial
According to the complaint, on January 20, 2017, Stemline announced the price of the Offering of 4.5 million shares of its common stock at $10.00 per share, with expected gross proceeds of $45 million. Stemline filed a prospectus supplement (the “Prospectus”) with the U.S. Securities and Exchange Commission for the Offering that detailed that SL-401’s safety profile “has continued to remain predicable and manageable over increasing treatment duration, drug exposure, and patient experience.” The Prospectus also touted SL-401’s favorable clinical data, stating that the company planned to initiate multiple clinical trials with the drug in a variety of hematologic cancers. However, the complaint alleges that Stemline officials failed to disclose that a cancer patient in one of its trials died from a severe side effect on January 18, 2017.
On February 2, 2017, TheStreet published an article revealing that on January 18, 2017, one day prior to the Offering, a cancer patient in a Stemline clinical trial tied to SL-401 died from a severe side effect, a type of low blood pressure known as capillary leak syndrome. The report further stated that the death is “potentially troubling because it occurred after Stemline had already increased safety monitoring and added new dosing rules to reduce the incidence and severity of the 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 42.5%, 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.