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Oasmia Pharmaceutical AB

41 days left to seek lead plaintiff status

Case Summary

Company Name
Oasmia Pharmaceutical AB
Stock Symbol
OASM
Class Period
October 23, 2015 to July 9, 2019
Motion Deadline
September 27, 2019
Court
Eastern District of New York

The complaint charges Oasmia and certain of its former officers with violations of the Securities Exchange Act of 1934.  Oasmia, which is incorporated in Sweden, is a pharmaceutical company focused on the development of a new generation of drugs within the fields of human and veterinary oncology.  The Company aims to develop and manufacture novel anti-cancer formulations based on well-established cytostatics which, in comparison with the current alternatives, demonstrate improved properties, a reduced side-effect profile, and an expanded therapeutic area.

The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Oasmia’s business and operations.  Specifically, defendants failed to disclose, among other things, that Oasmia was engaged in improper related-party transactions with Alceco International S.A. and Ardenia Investment Ltd., which were controlled by Julian Aleksov, the Company’s founder and CEO, and his former father-in-law, and that, due to those transactions, millions of Swedish kronor were not accounted for on Oasmia’s books.  As a result of this information being withheld from the market, Oasmia American Depositary Shares (“ADSs”) traded at artificially inflated prices during the Class Period, reaching a high of more than $5 per ADS.

On June 28, 2019, Oasmia announced it had decided to report certain suspicious transactions between Oasmia and Alceco and Ardenia to the Swedish Economic Crime Authority.  Oasmia also stated that “transactions regarding [its] patents ha[d] been carried out in a doubtful way according to independent IP-right lawyers.”  On this news, the price of Oasmia ADSs fell nearly 24%.  Then on July 9, 2019, Oasmia announced it had terminated its relationship with Aleksov “in light of the transactions mentioned in the company’s press release on June 28.”  The Company also stated it had “filed a report with the Swedish Economic Crime Authority in th[e] matter [and a] special examiner ha[d] . . . been appointed.”  On this news, the price of Oasmia ADSs fell $0.34 per ADS, or more than 13%, to close at $2.26 per ADS on July 10, 2019.

Class Period: October 23, 2015 - July 9, 2019
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