Cell Therapeutics slapped with lawsuit over pixantrone

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Fresh off a brisk rejection by the FDA of their lead drug candidate pixantrone, Seattle's Cell Therapeutics Inc (CTI) now faces a massive shareholder lawsuit claiming the company took part in some stunning and grotesque behavior that was meant to raise the value of company shares and ensure FDA approval.

The lawsuit is charging that CTI and a selection of its executives violated federal securities laws. While under an agreement with the FDA, the suit claims that company executives knowingly made misleading statements about the drug's efficacy as well as the prospects for its FDA approval.

Among the additional allegations is the accusation—sickening if true—that CTI enrolled a significant number of people in its phase III pixantrone study who in fact did not suffer from aggressive non-Hodgkin's lymphoma.

By Ross Bonander

Source: Glancy Binkow & Goldberg LLP

Additional reading: Treadle of the Loom (blog): "The other 70 percent"

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