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SOURCE Barrack, Rodos & Bacine
PHILADELPHIA, Aug. 1, 2014 /PRNewswire/ -- Barrack, Rodos & Bacine is investigating possible violations of the federal securities law, including unlawful insider trading, on behalf of purchasers of Galectin Therapeutics, Inc. ("Galectin") (NASDAQ: GALT) securities between July 9, 2013 and July 28, 2014.
On July 9, 2013, Galectin CEO Peter Traber appeared on the Maria Sanchez radio show and discussed what he called the "silent epidemic" of fatty liver disease. Traber said Galectin was developing a protein inhibitor that would help to prevent "inflammation and scarring in the liver" and that it had "really outstanding preclinical data." He further said that through tests involving animal models, "we're actually able to reverse not just the inflammation, but established fibrosis and cirrhosis."
On July 12, 2013, Galectin engaged TDM Financial, a stock promoter, in order to expand Galectin's shareholder base through a combination of blast emails, targeted content syndication, and other means. Defendants engaged in a lengthy effort to "pump" the price of Galectin stock through a series of press releases, seemingly independent of Galectin, that promoted the stock. These press releases and other statements extolling the company continued from July 25, 2013 through July 25, 2014.
However, beginning on July 28, 2014, the truth about Galectin began to emerge. An article on SeekingAlpha.com reported that Galectin had "strong ties to stock promoters" engaging in a misleading brand awareness campaign aimed at boosting its stock price. A separate article on TheStreet.com revealed that Galectin had engaged TDM Financial, a penny-stock promotions firm, to undertake promotional campaigns to entice investors to buy its stock. And, on July 29, 2014, Galectin reported Phase 1 results on its liver experimental drug GR-MD-02 showing little difference from a placebo in its Phase 1 study. On this news, shares of Galectin Therapeutics fell precipitously by $8.84, or 60.08%, to close at $5.70.
For more than 35 years, Barrack, Rodos & Bacine has successfully litigated major securities actions in courts throughout the United States. As compiled by the Securities Class Action Clearinghouse at Stanford University and Cornerstone Research, Barrack, Rodos & Bacine has served as a lead counsel in some of the most successful securities class action cases, recovering over $11 billion for injured investors over the past dozen years, including three of the top ten case settlements.
If you purchased Galectin securities between July 9, 2013 and July 28, 2014 or have knowledge of any facts related to this investigation, please contact: Samuel M. Ward of Barrack Rodos & Bacine, at 619-230-0800, or via e-mail to Samuel Ward at firstname.lastname@example.org.
Media Contact: Samuel Ward, Esq., Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103, (619) 230-0800, www.barrack.com.
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