Tomahawk, WI 02/17/2014 (BasicsMedia) – Galena Biopharma, Inc. (NASDAQ:GALE) is under investigation over claims it might have violated federal securities laws with its trading activities in the market. The investigation is being carried out by Law Offices of forward G Smith on behalf of shareholders. The investigation will try to unravel the truth behind the company’s recent operations.

Galena which specializes in the development of oncology treatments that addresses issues related to cancer treatment is under investigation concerning an article published on February12, 2014 on TheStreet Financial website. The article claimed the company was engaging in misleading brand awareness campaign aimed at boosting its stock price. Documents have already been pulled from the ‘DreamTeams’ website highlighting the purported claims.

It’s being claimed, Galena Biopharma, Inc. (NASDAQ:GALE) hired stock promotion companies to tout the company stock of which some of the tactics that were used resemble stock promotion schemes. It is also being claimed the company insiders have been making millions of dollars as a result of inside trading of the company’s shares… This is not the first challenge the company is facing this fiscal year, as it has been grappling with a deteriorating net income accompanied with a weak operating cash flow as well as small growths in its earnings per share.

The latest investigation has had a massive impact on the company stock as they have slumped in the market having received the wrath of investors and analysts in Wall Street. Galena is being accused of hiring Blogs, social media groups as well as investor websites to say positive things about the company stock so that it could move up in the stock exchange. The promotion coincided with the company insiders offloading most of their shares in a bid of getting quick returns thus the major concern.

Galena Weaknesses in the market

Galena Biopharma, Inc. (NASDAQ:GALE)’s weaknesses seen in various sectors has prompted analysts at TheStreet to give it the rating of a Sell. The company is currently grappling with a weak operating cash flow which has dropped by 91.66% in the current quarter when compared to the previous quarter. The company’s earnings have also been negatively impacted having dropped by 22.2% in the current quarter with the company commanding a declining trend of earnings per share. A lot awaits to be seen of what will happen if the company is found guilty of infringing securities laws

Galena Biopharma Inc. (NASDAQ:GALE) closed Friday trading with a  huge slump of 14.35% to close the day at low trading margins of $3.73 per share.

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