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Federal investigation of Galena Biopharma reaches subpoena stage

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Friday, May 16, 2014

The SEC is looking into whether the Lake Oswego biotech firm violated securities fraud of shareholder protection laws.

At issue: a marketing campaign funded by Galena that included stock analysis articles purportedly by individual investors who may have received payment for their work. Federal shareholder protection laws call for anyone being paid to promote a stock to disclose it.

The SEC subpoena, or legal demand, of Lion Biotechnologies -- reported by online stock columnist Adam Feuerstein of The Street -- was disclosed in a recent filing by Lion. As for why Lion received the demand, Feuerstein speculates that Lion used the same promotional firm, and also shares a board member with Galena.

Read more at OregonLive.com

 

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