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Spectrum Pharmaceuticals, Inc. Class Action Lawsuit - SPPI

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Case Summary

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The Spectrum Pharmaceuticals class action lawsuit seeks to represent purchasers of Spectrum Pharmaceuticals, Inc. (NASDAQ: SPPI) common stock between December 6, 2021 and September 22, 2022, inclusive (the “Class Period”).  Captioned Osorio-Franco v. Spectrum Pharmaceuticals, Inc., No. 22-cv-10292 (S.D.N.Y.), the Spectrum Pharmaceuticals class action lawsuit charges Spectrum Pharmaceuticals and certain of its top executives with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Spectrum Pharmaceuticals class action lawsuit, please provide your information in the form on this page.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Spectrum Pharmaceuticals class action lawsuit must be filed with the court no later than February 3, 2023.

CASE ALLEGATIONS: Spectrum Pharmaceuticals purports to be a biopharmaceutical company focused on acquiring, developing, and commercializing novel and targeted oncology therapies.  Before the Class Period, defendants were conducting a phase 2 clinical trial called ZENITH20, an ongoing, multicenter, multi-cohort, open-label, activity-estimating study evaluating the anti-tumor effects, safety, and tolerability of poziotinib, or “pozi.”  Before the Class Period, Spectrum Pharmaceuticals had a pre-new drug application (“NDA”) meeting with the U.S. Food & Drug Administration (“FDA”), during which Spectrum Pharmaceuticals confirmed with the FDA that Cohort 2 data could serve as the basis of a new NDA submission.  Spectrum Pharmaceuticals was seeking Accelerated Approval (“AA”) for pozi.

But as the Spectrum Pharmaceuticals class action lawsuit alleges, defendants during the Class Period represented the safety and efficacy data from the ZENITH20 trial were positive and that they had initiated the required confirmatory phase 3 study.  However, unknown to investors, this was not true.  As later revealed to investors, the data submitted by Spectrum Pharmaceuticals in support of the NDA failed to show that pozi provided a meaningful advantage over available therapies and therefore was not likely to provide a clinical benefit.  During the Class Period, the FDA expressed concerns regarding pozi’s safety and efficacy data, and further, the FDA expressed concern that Spectrum Pharmaceuticals’ phase 3 confirmatory trial, which was required to be substantially enrolled at the time of AA, had not enrolled a single patient during the Class Period.  The FDA communicated to Spectrum Pharmaceuticals that given the concerns regarding the totality of evidence supporting the NDA, the significant delay in confirming benefit with a randomized trial heightened the uncertainty around the risk benefit assessment of pozi.

On September 20, 2022, the FDA’s Oncologic Drugs Advisory Committee (“ODAC”) released a briefing document in anticipation of its September 22, 2022 meeting with Spectrum Pharmaceuticals to review poziotinib disclosing not only negative data on the safety and efficacy of pozi, but also a failure by Spectrum Pharmaceuticals to enroll any patients in the required phase 3 confirmatory trial.  On this news, Spectrum Pharmaceuticals’ stock price fell by approximately 37%.

Then, on September 22, 2022, the ODAC voted 9-4 not to recommend pozi for AA.  On this news, Spectrum Pharmaceuticals’ stock price fell an additional 31%, further damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Spectrum Pharmaceuticals common stock during the Class Period to seek appointment as lead plaintiff in the Spectrum Pharmaceuticals class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Spectrum Pharmaceuticals class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Spectrum Pharmaceuticals class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Spectrum Pharmaceuticals class action lawsuit. 

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors in 2021 – more than triple the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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