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Hagens Berman Files Securities Class Action Against Dendreon

After the news was released August 3, 2011, the Seattle-based company's stock dropped by over 60 percent, reducing the company's market value by over $3 billion.

According to the suit, Dendreon executives repeatedly issued false and misleading statements to the investment community regarding Provenge, leading investors to believe that the medical community would quickly adopt the drug to treat prostate cancer. The suit contends that the company knew - or recklessly disregarded knowledge - that the drug's high price would severely hamper its adoption.

"We intend to prove that Dendreon painted a very optimistic view of Provenge to the market when in fact the drug's high price limited its potential for wider adoption," said Steve Berman, attorney for the plaintiffs. "When the sales numbers illustrated this incontrovertible truth, the company was forced to own up to the drug's failure, devastating investors across the country."

Dendreon previously projected that it would earn between $350 and $400 million on sales of Provenge. According to media sources, the drug cost over $93,000 per patient, and only extends the lives of prostate cancer patients by an average of four months. According to the same reports, doctors have adopted the drug slowly for fear of delays in reimbursement for the costly treatment.

The lawsuit also claims that several insiders within Dendreon sold shares of the company while the price was artificially inflated, including Mitchell H. Gold, the company's Chief Executive Officer and President, who sold 128,000 shares for $4.84 million, SEC records show.

The lawsuit seeks to recover damages on behalf of all purchasers of common stock of Dendreon between January 7, 2011, and August 3, 2011.

Investors in Dendreon who purchased common shares between January 7, 2011, and August 3, 2011, are encouraged to contact Hagens Berman at DNDN@hbsslaw.com or by phone at 206-623-7292. Additional information is also available at www.hbsslaw.com/dendreon.

About Hagens Berman

Seattle-based Hagens Berman Sobol Shapiro LLP is one of the top class-action law firms in the nation, with offices in Boston, Chicago, Colorado Springs, Los Angeles, Minneapolis, New York, Phoenix, San Francisco and Washington, D.C. Founded in 1993, we represent plaintiffs in class actions and multi-state, large-scale litigation that seek to protect the rights of investors, consumers, workers and whistleblowers. More information about the firm is available at www.hbsslaw.com.

Firmani + Associates Inc.
Mark Firmani, 206-443-9357
mark@firmani.com