Lake Oswego biotech firm under federal investigation

Lake Oswego biotech firm under federal investigation

The U.S. Securities and Exchange Commission is investigating Galena Biopharma over a marketing campaign that may have violated shareholder protection laws.

Galena Biopharma saw its stock price shoot up from $2.35 a share July to $7.77 in January only to watch it plummet after an online reporter disclosed a marketing campaign that employed a company called The DreamTeam Group to place articles and generate "buzz." Before the drop in stock price, company directors and officers made millions by selling hundreds of thousands of shares. 

The investigation recently may have gained a witness: a Los Angeles man who claims he was offered money by a marketing firm to post articles online about Galena Biopharma and another firm. Federal shareholder protection laws call for anyonebeing paid to promote a stock to disclose it.

Read more at OregonLive.com