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Celsion Corporation Class Action Lawsuit

Company Name
Celsion Corporation
Stock Symbol
CLSN
Class Period
November 2, 2015 to July 10, 2020
Court
District of New Jersey

Case Summary

The Celsion Corporation class action lawsuit charges Celsion Corporation and certain of its senior executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Celsion securities between November 2, 2015 and July 10, 2020, inclusive (the “Class Period”).  The Celsion class action lawsuit was commenced on October 29, 2020 in the District of New Jersey and is captioned Spar v. Celsion Corporation, 20-cv-15228.

Headquartered in Lawrenceville, New Jersey, Celsion is a clinical stage oncology drug company that focuses on the development and commercialization of directed chemotherapies, DNA-mediated immunotherapy, and RNA-based therapies for the treatment of cancer.  Celsion’s lead product candidate is ThermoDox, a heat-activated liposomal encapsulation of doxorubicin, which is in Phase III clinical development for the treatment of primary liver cancer.

The Celsion class action lawsuit alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:  (i) defendants had significantly overstated the efficacy of ThermoDox; (ii) the foregoing significantly diminished the approval and commercialization prospects for ThermoDox; and (iii) as a result, Celsion’s public statements were materially false and misleading at all relevant times.

On July 13, 2020, Celsion announced that “it ha[d] received a recommendation from the independent [Data Monitoring Committee (‘DMC’)] to consider stopping the global Phase III OPTIMA Study of ThermoDox® in combination with [RFA] for the treatment of [HCC], or primary liver cancer.” According to Celsion, “[t]he recommendation was made following the second pre-planned interim safety and efficacy analysis by the DMC on July 9, 2020,” which “found that the pre-specified boundary for stopping the trial for futility of 0.900 was crossed with an actual value of 0.903.”  On this news, Celsion’s stock price fell $2.29 per share, or nearly 64%, to close at $1.29 per share on July 13, 2020.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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