UPDATE (FEBRUARY 2012): Opting Out of DNDN Class Action May Offer More Money to Investors.

Although a class action lawsuit has been filed on behalf of Dendreon shareholders, we believe that opting out of the class action offers you a much better chance of recovering your losses and recovering more. Click here to learn more about the DNDN Opt-Out Lawsuit.

Dendreon Corporation (Nasdaq:DNDN) is being sued by shareholders for violations of the Securities Exchange Act.

Dendreon's (Nasdaq:DNDN) stock collapses after earnings statement.

The shareholder lawsuit filed against Dendreon alleges that DNDN greatly overstated the projected sales of the cancer drug Provenge and misled investors by issuing false statements about the drug. Dendreon had made statements projecting their 2011 sales to be between $350 million to $400 million. These figures turned out to be completely unfounded, and on August 3, 2011, Dendreon announced financial results that were well below analysts' expectations and the company withdrew its earnings guidance for the entire fiscal year. Shares of Dendreon stock plummetted by more than 67%, quickly reducing DNDN's market value by more than $3 billion.

The shareholder lawsuit also alleges that Dendreon failed to disclose that doctors were reluctant to use Provenge for their patients because of concerns about its costs and getting fully reimbused. Provenenge comes from a new class of drugs uniquely designed around the individual patient's immune system, and is used to treat prostate cancer. The drug costs about $93,000 per course of treatment rendering it an expensive option. The company allegedly failed to inform investors about these issues.

CEO sells $5 Million in Dendreon stock before collapse.

The shareholder class action lawsuit against Dendreon also alleges that management including the CEO, sold shares while the share price was artificially inflated, thus defrauding other investors by failing to have financial controls in place to prevent insiders trading and earning large profits from non public information. Dendreon's CEO, Mitchell H. Gold, sold 128,000 shares for $4.84 million before Dendreon's stock collapsed.

Own shares of Dendreon Corporation (Nasdaq:DNDN)? Protect your rights by contacting us.

Suffered losses? Upset about Dendreon's alleged fraud? Our Law Firm may be able to help you recover your losses. Complete the form on this page or call us at 1-800-934-2921 for a free no obligation consultation.