NEW YORK, Aug. 7, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Galectin Therapeutics, Inc. ("Galectin" or the "Company") (Nasdaq:GALT) and certain of its officers. The class action, filed in United States District Court, District of Nevada, and docketed under 14-cv-01287, is on behalf of a class consisting of all persons or entities who purchased Galectin securities between January 6, 2014 and July 28, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Galectin securities during the Class Period, you have until September 29, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Galectin is a development stage company engaged in the research and development of therapies for fibrotic disease and cancer. The Company's lead product candidates include GR-MD-02, a complex polysaccharide polymer for the treatment of liver fibrosis and fatty liver disease (nonalcoholic steatohepatitis or "NASH").
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was utilizing the services of paid stock promoters to disseminate positive but misleading reports about Galectin's prospects; (2) moreover, GR-MD-02 did not provide the benefits suggested by Defendants when discussing the patent the Company was awarded or the Phase 1 clinical trial it was conducting; and (3) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On July 28, 2014, Bleecker Street Research published an article on SeekingAlpha.com claiming that Galectin "has strong ties to stock promoters" engaging in a misleading brand awareness campaign aimed at boosting its stock price.
On July 28, 2014, Adam Feuerstein ("Feuerstein") published an article on TheStreet.com revealing that Emerging Growth Corp. ("Emerging Growth"), through its parent company TDM Financial ("TDM"), a penny-stock promotions firm, was the investor relations and marketing company Galectin was paying for misleading promotional campaigns to entice investors to buy its stock.
On this news, Galectin's stock fell $8.84 per share to close at $5.70 per share on July 29, 2014, a one-day decline of nearly 61% on volume of nearly 7.7 million shares.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby