hmmmmmmmm. They want CASH instead of warrants!
Item 8.01 Other Events
As previously reported by us, several holders of our outstanding warrants to purchase common stock have filed Complaints against us in the United States District Court for the Southern District of New York (the "Court") alleging, among other things, that our announced plan to spin off RXi and certain actions taken by us in preparation for the spin-off gives the holders the right to require us to repurchase their warrants.
On February 2, 2012, another warrant holder filed a Complaint in the Court, captioned Iroquois Master Fund, Ltd. v. Galena Biopharma, Inc., 12 CIV 0839, in which the warrant holder similarly claims that our planned spin-off of RXi and related actions gives the warrant holder the right to require us to repurchase the holder's warrants for $1,000,000.
We believe that we have valid defenses to the claims made in this new Complaint and in the previous Complaints, and intend to defend the claims vigorously. It is too early in the proceedings, however, to predict the outcome of these matters.
Soooooooooo. Why are all these big "pro" investors filing lawsuits?
YOU THINK RETAIL INVESTOR'S INTERESTS ARE EVER CONSIDERED IN THESE LAWSUITS?????????????
AREN'T THEY ALWAYS SETTLED OUT OF COURT ANYWAY???????????????????
You grasshoppers think the stock market is a ZERO SUM GAME?????????
"In suing Galena, Iroquois has joined the ranks of other investment groups that feel burned after investing in RXi.
In December, Hudson Bay Master Fund filed the first suit, which is seeking $1.4 million, claiming that it participated in two RXi/Galena public offerings, and that both transactions included protective terms that would allow it to sell back the warrants it had bought in the event of a fundamental transaction such as a corporate restructuring or merger/acquisition (GSN 12/22/2011)."
Last month, a group of firms — Tenor Opportunity Master Fund, Aria Opportunity Fund, and Parsoon Opportunity Fund — jointly filed similar litigation seeking $1.5 million (GSN 1/19/2012). Also in January, Cranshire Capital Master Fund lodged its own legal complaint on the same issue, asking for $1.3 million in damages (GSN 1/26/2012).