Madison, Wisconsin | Securities Fraud Attorneys

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1. Daniel M. Key, Esq says:

   November 5, 2011 at 4:29 am

   I came across your information during a Google search. Securities fraud is just about the last area of law an attorney should dabble in, so I’m forwarding this information to you. I’ve been a shareholder of GNVC since mid 2009 and have lost a significant amount of money. I became very suspicious of GNVC’s conduct following a secondary offering to Roth Capital. Here’s a quick timeline:

   1. Around 2006, GNVC initiated a PACT (Pancreatic Advanced Cancer Trial) using its adenovector and TNFerade vaccine technologies in an effort to treat pancreatic cancer.

   2. April 2009, GNVC discontinued production of TNFerade with Cobra Biomanufacturing, PLC despite persistent PR regarding the efficacy of PACT and TNFerade.

   3. January 7, 2010, Roth Capitol initiated analyst coverage of GNVC with a price target of $4.00. The stock was selling at $1.71.

   4. Within days (January 27, 2010), GNVC entered into a secondary offering with Roth Capitol for the sale of 14,000,000 shares of its common stock at $2.00 per share in addition to warrants to purchase 4,200,000 shares of its common stock with an exercise price of $2.75 p/s. The gross proceeds of the offering were $28.0 million. GNVC was selling at appx. $3.00 per share, ostensibly as a response in part to Roth’s price target of $4.00.

   5. On March 30th, 2010, GNVC announced cessation of PACT after hours. Efficacy proved to be statistically insignificant. Shares plunged 79%.

   6. On May 23, 2010, Senior Vice President Mark Thornton unexpectedly resigned.

   7. On June 16, 2010, GNVC hired Wells Fargo, Co. to facilitate the sale of all, or part of the company. GNVC and its technology received no offers.

   8. On April 5, 2011, GNVC completed a 1 for 10 reverse split following postings on internet message boards from “selected investors” who were ostensibly contacted by the company and convinced to vote for the R/S.

   Here’s what I believe occurred:

   GNVC knew PACT failed months before publicly announcing it; shortly before quietly shutting down TNFerade production.

   Knowing that the failure of PACT would financially devastate the company once the news became public, GNVC entered into a secondary offering with Roth Capitol who initiated coverage of GNVC at $4.00 per share. This artificially inflated the PPS and further added to the impression that PACT and TNFerade were viable. GNVC then sold Roth Capitol steeply discounted shares at $2 when its stock price on the open market was $3 after being pumped by Roth’s $4.00 target price and favorable PR.

   GNVC was engaged in a scheme to manipulate its stock’s price. It withheld negative information from investors regarding the PACT study to ensure the share price remained inflated until the Roth money was in GNVC coffers. GNVC sold Roth Capital discounted shares so as to raise enough money to keep the company afloat after it dropped the PACT bomb on the public. Without the Roth deal, GNVC would have bankrupted and corporate salaries lost.

   GNVC contacted “select” investors who received 11th hour phone calls from management to convince them to vote for a 1-10 reverse-split. The information shared with these investors was not made available to all investors. The split was necessary to keep the company listed on NASDAQ and further the perception of credibility. The split significantly reduced investors positions in the company.

   One and 1/2 years later, GNVC still refuses to release the PACT study. I suspect documents show the company knew its science had failed well before announcing it – likely around the time TNFerade production was stopped.

   At face value, these appear to be the actions of a company desperate to stay alive. A company that has not brought a single product to market in 20 years. A company that knew it had no science, no vaccine, no product on the horizon to keep it in business once PACT failed. Wells Fargo’s inability to sell the company’s science supports this.

   In summary, I suspect possible breaches of fiduciary duty and other violations of law by the Board of Directors of Genvec for not acting in shareholders’ best interests. The cover-up and delayed release of the failure of PACT and GNVC’s flagship product, TNFerade; Roth’s price target of $4.00; and GNVC’s failure to acknowledge and discount inaccurate press releases, misled investors to buy shares at fraudulently inflated prices.

   Motivation. Ability. Opportunity. The elements are there.

   Thanks!