SPPI:NASDAQ Class Action Lawsuit (SPPI) was filed on December 5, 2022 on behalf of the shareholders.
On September 20, 2022, before the market opened, the FDA released a briefing document ahead of its scheduled September 22, 2022 ODAC meeting regarding poziotinib.
In sharp contrast to Defendants’ representations that the Zenith20 data was positive and that the required confirmatory Phase 3 trial was initiated and patients were being randomized, the briefing document identified material negative concerns about the efficacy and safety data supporting the pozi NDA, and revealed that Defendants’ Phase 3 confirmatory trial had not enrolled a single patient.
As a res ult of these disclosures, the price of Spectrum’s common stock declined from a closing price on September 19, 2022 of $1.06 per share, to close at $0.66 per share on September 20, 2022, a decrease of $0.40 per share or over 37%, on massive trading volume of over 21.85 million shares.
Then, on September 22, 2022, Defendants caused Spectrum to issue a press release concerning the FDA ODAC’s meeting that stated the following: …
As a result of this news, shares of Spectrum common stock fell again, from a closing price on September 22, 2022 of $0.63 per share to $0.43 at close on September 23, 2022, a decrease of $0.20 or approximately 31% on heavier than usual volume.