Bernstein Liebhard LLP Announces That a Class Action Has Been Filed Against Peregrine Pharmaceuticals, Inc.

October 15, 2012

Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of a class (the “Class”) of purchasers of Peregrine Pharmaceuticals, Inc. (“Peregrine” or the “Company”) (NASDAQ: PPHM) securities between July 16, 2012 and September 21, 2012 (the “Class Period”).

Peregrine is a biopharmaceutical company with a portfolio of innovative monoclonal antibodies in clinical trials focused on the treatment and diagnosis of cancer.  The Company is pursuing multiple clinical programs in cancer with its lead product candidate, bavituximab, and novel brain cancer agent Cotara.

The Complaint alleges that throughout the Class Period the defendants issued false and/or misleading statements or failed to disclose material adverse facts about Peregrine’s business and financial prospects, including that:  (1) there were major discrepancies between some patient sample test results and patient treatment code assignments; (2) as such, the clinical data from the Company’s randomized, double-blind placebo-controlled Phase II trial of bavituximab in second-line non-small cell lung cancer was unreliable; and (3) as result of the foregoing, the defendants’ positive statements about Peregrine’s business, operations, and prospects, including those statements relating to the clinical data from the Company’s randomized, double-blind placebo-controlled Phase II trial of bavituximab in second-line non-small cell lung cancer lacked a reasonable basis.

On September 24, 2012, Peregrine disclosed that during the course of preparing for an end-of-phase II meeting with regulatory authorities and following recent data announcements from its randomized, double-blind placebo-controlled Phase II trial of bavituximab in second-line non-small cell lung cancer, the Company discovered major discrepancies between some patient sample test results and patient treatment code assignments.  Moreover, Peregrine informed investors that they should no longer rely on clinical data that the Company had previously reported from its Phase II bavituximab trial in patients with second-line non-small cell lung cancer.

On this news, the Company’s shares declined $4.23 per share, or 78.48%, to close on September 24, 2012, at $1.16 per share, on unusually heavy volume.

Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired Peregrine securities stock during the Class Period.  If you purchased or otherwise acquired Peregrine securities stock during the Class Period, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff.  In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than November 27, 2012.

A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Under certain circumstances, one or more class members may together serve as lead plaintiff.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.

If you are interested in discussing your rights as a Peregrine shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or seidman@bernlieb.com.

Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients.  It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last ten years.

You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Central District of California.