BEVERLY, MA--(Marketwired - June 09, 2016) - Cellceutix Corporation (CTIX) (the "Company"), a clinical stage biopharmaceutical company developing innovative therapies with oncology, dermatology, anti-inflammatory and antibiotic applications, is pleased to announce that, yesterday, the U.S. District Court for the Southern District of New York granted the Company's motion to dismiss the securities class action lawsuit brought against the Company by a plaintiff represented by the Rosen Law Firm.
The ruling dismisses all claims against Cellceutix, denies the plaintiff's request to file an amended complaint, and orders that the case be closed. Writing on behalf of the Court in a 39-page ruling, the Honorable Judge Katherine Polk Failla dismissed the lawsuit in its entirety (Case 1:15-cv-07194-KPF), concluding:
For the reasons stated in this Opinion, Defendants' motion to dismiss Plaintiff's SAC [Second Amended Complaint] is GRANTED. Plaintiff has requested leave to replead, without presenting any concrete means of remedying the deficiencies identified in this Opinion. Because Plaintiff has previously been given leave to replead, and because the Court finds that any further repleading would be futile, Plaintiff's request is DENIED. See Loreley Fin. (Jersey) No. 3 Ltd. v. Wells Fargo Sec., LLC, 797 F.3d 160, 190 (2d Cir. 2015) (identifying futility as a proper ground for denying leave to replead); see generally United States ex rel. Ladas v. Exelis, Inc., - F.3d -, No. 14-4155-cv, 2016 WL 3003674, at *9 (2d Cir. May 25, 2016). The Clerk of Court is directed to terminate all pending motions, adjourn all remaining dates, and close this case.
"We are extremely pleased with Judge Failla's decision," commented attorney Michael J. Sullivan, lead counsel for Cellceutix and former U.S. Attorney for the District of Massachusetts. "From the outset, of this case, it was our opinion that the claims were both meritless and frivolous, so we were gratified that after careful consideration, to see Judge Failla agree to dismiss this case in its entirety. An anonymous libelous article caused this case to be filed. The author intended and in fact caused the price of Cellceutix's stock to decline. This type of manipulation of publicly traded stock is illegal and causes harm to companies and investors. We continue to work with regulators, prosecutors and law enforcement to assist in identifying the anonymous individuals and organizations intent on manipulating the value of a company's stock by publishing dishonest articles in online forums, and other venues. Such 'short and distort' tactics are illegal, detrimental to our securities markets, and must stop."
"We are extremely pleased with the ruling," stated Leo Ehrlich, Chief Executive Officer of Cellceutix. "I greatly appreciate the work of the Ashcroft Law Firm. They never wavered in their support, and put forth a zealous defense of our Company against these baseless claims. Frivolous class action lawsuits are a huge burden on the biotech industry, negatively impacting shareholders and patients alike. Not only is a company materially damaged, but promising treatments and cures under development are put at greater risk of not making it to market. These actions caused significant damage to our Company and shareholders. We hope that the dismissal of this case and all its ramifications sends a powerful signal to others to think twice about pursuing such actions."
The Court's opinion dismissing the lawsuit can be found on http://cellceutix.com/wp-content/uploads/2015/08/49-Memo-Opinion-and-Order-MTD-GRANTED.pdf
About The Ashcroft Law Firm
The Ashcroft Law Firm was founded by former U.S. Attorney General, Governor and Senator John Ashcroft, and has offices in Boston, MA, Washington, DC, St. Louis, MO, and Austin, TX. See http://ashcroftlawfirm.com/ for more information.
Cellceutix clinical trials on Clinicaltrials.gov: