NEW YORK, April 22, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Cellular Biomedicine Group Inc. (“CBMG” or the “Company”) (Nasdaq:CBMG) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 15-cv-01795, is on behalf of a class consisting of all persons or entities who purchased CBMG securities between June 18, 2014 and April 7, 2015 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”) and Section 17(b) of the Securities Act of 1933.
If you are a shareholder who purchased CBMG securities during the Class Period, you have until June 22, 2015 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 rswilloughby@pomlaw.com 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.
Cellular Biomedicine Group Inc., is a biomedicine company that develops treatments for cancerous and degenerative diseases in Greater China. It focuses on developing and marketing cell-based therapies to treat serious chronic and degenerative diseases, such as cancer, osteoarthritis, tissue damage, various inflammatory diseases, and metabolic diseases.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company achieved an unsustainable $500m valuation by using paid stock promoters, yet failed to disclose the use of such promoters in its regulatory filings pursuant to Section 17(b) of the Securities Act of 1933 ; (ii) the Company’s "Car-T" technology had experienced patient deaths and lacked any meaningful valuation; and (iv) as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times.
On April 7, 2015, a report was published on Seekingalpha.com, alleging that the Company was engaged in a massive fraudulent scheme to mislead investors and that the Company lacked any meaningful financial value.
On this news, CBMG securities declined $7.00 per share, or over 21.7%, to close at $25.22 per share on April 7, 2015.
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.