WHITE PLAINS, NY / ACCESSWIRE / December 6, 2022 / Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, announces the filing of a class action lawsuit against Spectrum Pharmaceuticals, Inc. ("Spectrum" or the "Company") for violations of the federal securities laws on behalf of investors.
On December 5, 2022, a complaint was filed against Spectrum, and certain of its top executives and directors, alleging that throughout the Class Period (December 6, 2021 to September 22, 2022), Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder by the SEC. The complaint alleges that Defendants were conducting a Phase 2 clinical trial called ZENITH20. The ZENITH20 trial was an ongoing, multicenter, multi-cohort, open-label, activity estimating study evaluating the anti-tumor effects, safety, and tolerability of poziotinib, or "pozi", in patients with locally advanced or metastatic non-small cell lung cancer that have certain mutations (HER2 exon 20 insertion mutations) and were previously treated with the standard of care. Additionally, the complaint alleges that during the Class Period, Defendants represented that the safety and efficacy data from the ZENITH20 trial were positive and, based on those positive results, had initiated a required confirmatory phase 3 study. This, however, was not true.
Investors learned of the truth on September 20, 2022 when the FDA Oncologic Drugs Advisory Committee ("ODAC") released a briefing document in anticipation of its September 22, 2022 meeting with Defendants to review poziotinib. Investors were surprised when, despite the Company's repeated representations during the Class Period that the data for ZENITH20 were positive, the ODAC briefing document disclosed not only negative data on the safety and efficacy of pozi, but also a failure by the Company to enroll any patients in a required phase 3 confirmatory trial. On this news, shares of Spectrum common stock declined $0.40, or over 37%, to close at $0.66 per share on September 20, 2022.
Then, on September 22, 2022, ODAC conducted its meeting concerning poziotinib and voted 9-4 not to recommend poziotinib for accelerated approval. On this news, shares of Spectrum common stock declined $0.20, or over 31%, to close at $0.43 per share on September 23, 2022.
If you suffered a loss in Spectrum's securities, and wish to participate, or learn more, click here, or please contact our attorneys at (914) 733-7234 or via email at [email protected]
Any investor who wishes to serve as Lead Plaintiff must act before the court deadline of February 3, 2023.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has recovered billions of dollars on behalf of its clients.
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SOURCE: Lowey Dannenberg P.C.