WASHINGTON, DC (APRIL 19, 2017) — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed on behalf of purchasers of Lion Biotechnologies, Inc. (NASDAQ: LBIO) securities between November 14, 2013 and April 10, 2017. The lawsuit seeks to recover damages for Lion Biotechnologies investors under the federal securities laws.
Any member of the putative class may move the Court to serve as lead plaintiff through attorneys of their choice, or may choose to do nothing and remain an absent class member. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Lion Biotechnologies securities during the relevant period. Members of the class will be represented by the lead plaintiff and attorneys chosen by the lead plaintiff.
If you wish to choose attorneys to represent you and the class, you must apply to be appointed lead plaintiff no later than June 13, 2017. If you wish to join the litigation, contact a USMA attorney to discuss your rights or interests. There is no obligation or cost to you.
About the Lawsuit
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company, through its former Chief Executive Officer and President, Manish Singh (“Singh”), engaged in a scheme to mislead investors by commissioning over 10 internet publications and 20 widely distributed emails promoting Lion to potential investors; (2) Singh had engaged a notorious stock promotion firm to pay writers to publish articles about the Company on investment websites; (3) Singh actively participated in Lidingo’s promotional work for Lion and understood that Lidingo was using writers who would not disclose that Lion was indirectly compensating them for their publications; and (4) consequently, the Company’s public statements were materially false and misleading at all relevant times.
Specifically, on May 14, 2014, the Company revealed it received a subpoena from the Securities and Exchange Commission (“SEC”). Then, after market on November 12, 2014, the Company issued a press release announcing the resignation of Singh. Lastly, on April 10, 2017, the SEC found that between September 2013 and March 2014, Lion, through Singh, engaged in the aforementioned scheme to mislead investors.
As a result of these disclosures, the share price of the Company declined, causing harm to investors.