SOURCE: Cellceutix

Cellceutix

February 12, 2016 08:00 ET

Cellceutix Files Motion to Dismiss Complaint Filed by The Rosen Law Firm

BEVERLY, MA--(Marketwired - February 12, 2016) - Cellceutix Corporation (OTC: CTIX) (the "Company"), a clinical stage biopharmaceutical company developing innovative therapies with oncology, dermatology, anti-inflammatory and antibiotic applications, today announces that the Company's counsel, The Ashcroft Law Firm, on Wednesday, February 10, 2016 submitted to the United States District Court, Southern District of New York, a Memorandum of Law in support of our Motion to Dismiss the Second Amended Complaint filed by The Rosen Law Firm, lead counsel to the only plaintiff in the case, Greg Zagami (as told to the court in December 2015). 

The document can be viewed at:

http://cellceutix.com/wp-content/uploads/2015/08/37-2016.02.10-Defendants-Memo-of-Law-in-Support-of-Motion-to-Dismiss-SAC.pdf

The Request For Judicial Notice can be found at:

http://cellceutix.com/wp-content/uploads/2015/08/38-2016.02.10-Defendants-Request-for-Judicial-Notice.pdf

As Cellceutix has previously stated, the Company considers this case to be extremely frivolous and believe the facts in the Memorandum of Law prove this contention. Cellceutix wants to better clarify how a motion to dismiss works. At this point in a case, a judge essentially accepts everything in the (Plaintiff's) complaint as true. While the Company would like to say, "That allegation is factually not true" and provide reasons why, that is not how it's done in a Motion to Dismiss. As the defendant, Cellceutix is tasked with providing facts that the Company and its officers did not do anything improper with respect to disclosing information, disclaimers, scienter or any other of the allegations. The Company is limited in what exhibits may be used to plead its case, primarily kept to only regulatory filings and other documents the plaintiff referenced.

Cellceutix believes that the Ashcroft Law Firm clearly and effectively conveyed the message in the Memorandum of Law and Motion to Dismiss. Cellceutix's lead counsel, Mike Sullivan, addressed each allegation, systematically dismantling the complaint with legal precedent as to why the plaintiff's allegations are insufficient, that Cellceutix and its officers did not make any false or misleading statements and that the allegations do not state a claim.

In short, it is Cellceutix's contention that there are no legal grounds for the complaint and that The Rosen Law Firm has not provided factual allegations that are sufficient for the complaint to survive dismissal. As Mike Sullivan puts it, they are only trying to "create smoke."

Additional background material can be viewed at:

"Cellceutix Responds to Rosen Law Firm"

http://cellceutix.com/cellceutix-responds-to-rosen-law-firm/#sthash.Oo6p7vwW.1NQAedgg.dpbs

Boston Business Journal

"My Visit To Cellceutix, The Biotech That A Short Seller Recently Called A Sham"

http://www.bizjournals.com/boston/blog/bioflash/2015/08/my-visit-to-cellceutix-the-biotech-that-a-short.html?ana=twt

The Rosen Law Firm press releases

http://www.businesswire.com/portal/site/home/search/?searchType=all&searchTerm=Rosen%20Law%20Firm&searchPage=1 (It's necessary to scroll down past all the other releases Rosen files to August 6, 2015 and September 11, 2015 to view press releases regarding Cellceutix).

Other

The true Cellceutix. This week Cellceutix announced two important events. Regular updates will be forthcoming.

Cellceutix Meets With FDA for Phase 2 Clinical Trial of Kevetrin for Ovarian Cancer

http://cellceutix.com/cellceutix-meets-with-fda-for-phase-2-clinical-trial-of-kevetrin-for-ovarian-cancer/#sthash.wtV4ZA0R.dpbs

Cellceutix to Submit Special Protocol Assessment Request to FDA for Phase 3 Clinical Study of Antibiotic Brilacidin for ABSSSI

http://cellceutix.com/cellceutix-to-submit-special-protocol-assessment-request-to-fda-for-phase-3-clinical-study-of-antibiotic-brilacidin-for-absssi/ - sthash.uUkQhEWL.dpbs

About Cellceutix:
Headquartered in Beverly, Massachusetts, Cellceutix is a publicly traded company under the symbol "CTIX". Cellceutix is a clinical stage biopharmaceutical company developing innovative therapies in multiple diseases. Cellceutix believes it has a world-class portfolio of compounds and is now engaged in advancing its compounds and seeking strategic partnerships. Cellceutix's anti-cancer drug Kevetrin is concluding a Phase 1 clinical trial at Harvard Cancer Centers' Dana Farber Cancer Institute and Beth Israel Deaconess Medical Center, and Cellceutix is now preparing its application for a Phase 2 study. In the laboratory Kevetrin has shown to induce activation of p53, often referred to as the "Guardian Angel Gene" due to its crucial role in controlling cell mutations. Cellceutix is in a Phase 2 clinical trial with its novel compound Brilacidin-OM for the prevention of Oral Mucositis in patients with head and neck cancer. Brilacidin-OM, a defensin mimetic compound, has shown in an animal model to reduce the occurrence of severe ulcerative oral mucositis by more than 94% compared to placebo. Cellceutix's anti-psoriasis drug Prurisol is in a Phase 2 trial. Prurisol is a small molecule that acts through immune modulation and PRINS reduction. Cellceutix's lead antibiotic, Brilacidin, has completed a Phase 2b trial for Acute Bacterial Skin and Skin Structure Infections, or ABSSSI. Top-line data have shown a single dose of Brilacidin to deliver comparable clinical outcomes to the FDA-approved seven-day dosing regimen of daptomycin. Brilacidin has the potential to be a single-dose therapy for certain multi-drug resistant bacteria (Superbugs). Cellceutix has formed research collaborations with world-renowned research institutions in the United States and Europe, including MD Anderson Cancer Center, Beth Israel Deaconess Medical Center, and the University of Bologna. More information is available on the Cellceutix web site at www.cellceutix.com.

Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that could cause Cellceutix's actual results and experience to differ materially from anticipated results and expectations expressed in these forward looking statements. Cellceutix has in some cases identified forward-looking statements by using words such as "anticipates," "believes," "hopes," "estimates," "looks," "expects," "plans," "intends," "goal," "potential," "may," "suggest," and similar expressions. Among other factors that could cause actual results to differ materially from those expressed in forward-looking statements are Cellceutix's need for, and the availability of, substantial capital in the future to fund its operations and research and development; including the amount and timing of the sale of shares of common stock to Aspire Capital; the fact that Cellceutix's compounds may not successfully complete pre-clinical or clinical testing, or be granted regulatory approval to be sold and marketed in the United States or elsewhere. A more complete description of these risk factors is included in Cellceutix's filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements. Cellceutix undertakes no obligation to release publicly the results of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by applicable law or regulation.

Contact Information

  • INVESTOR AND MEDIA CONTACT:
    Cellceutix Corporation
    Leo Ehrlich
    Email contact