Spectrum Pharmaceuticals Inc. (SPPI) Misled Investors Regarding the Viability and Efficacy of its New Drug

A shareholder filed a class action on behalf of all purchasers of Spectrum Pharmaceuticals, Inc.  (NASDAQ: SPPI) common stock between December 6, 2021 and September 22, 2022, for violations of the Securities Exchange Act of 1934. Spectrum purports to be a  biopharmaceutical company focused on acquiring, developing, and commercializing novel and targeted oncology therapies.

According to the complaint, Spectrum repeatedly assured investors of positive safety and efficacy data from its poziotinib phase 2 clinical trial and that it initiated the required confirmatory phase 3 while omitting crucial information.

Investors began to learn the truth on September 20, 2022, when the FDA Oncologic Drugs Advisory Committee released a briefing document (“ODAC”) which disclosed both negative data on the safety and efficacy of poziotinib and that Spectrum had not enrolled any patients in the required confirmatory phase 3 trial. Then, during the September 22 ODAC meeting, the committee overwhelmingly voted against poziotinib for accelerated approval.

These events drove the price of Spectrum shares crashing lower.

What Now: Shareholders who purchased shares of Spectrum Pharmaceuticals between May 17, 2022 and September 22, 2022, have until September 24, 2025, to seek appointment as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.