NEW YORK, March 9, 2015 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of Akorn, Inc. ("Akorn" or "the Company") (Nasdaq:AKRX) common stock during the period between April 17, 2014 and March 2, 2015 (the "Class Period") for violations of federal securities laws.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Akorn common stock during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so by May 4, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact David Titus at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (888) 823-9041 or (212) 952-0602, by email to dtitus@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding Akorn's business, operational and compliance policies. Specifically, the Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) as of December 31, 2014, more than eight months after it acquired Hi-Tech Pharmacal Co., Inc. ("Hi-Tech") and four months after it acquired VersaPharm Incorporated ("VersaPharm"), Akorn did not yet integrate those subsidiaries into the Company's centralized accounting department and accounting systems; (2) certain financial and other related data related to Hi-Tech and VersaPharm, which require inclusion in Akorn's annual report to be filed with the Securities and Exchange Commission ("SEC") on Form 10-K, could not be timely collected and compiled; (3) due to the aforementioned issues, the Company would be unable to timely complete its assessment of the effectiveness of its internal control over financial reporting as of December 31, 2014; (4) Akorn's internal control over financial reporting was ineffective and material weaknesses existed relating to the completeness and accuracy of underlying data used in the determination of significant estimates and accounting transactions and accurate and timely reporting of its financial results and disclosures in its Form 10-K; (5) and as a result of the foregoing, Akorn's public statements were materially false and misleading at all relevant times.
The Complaint also alleges that on March 2, 2015, after the close of trading, the Company issued a press release and filed a Form 12b-25, Notification Of Late Filing, with the SEC, announcing that it would need an extension to file its annual report on Form 10-K for the year ending December 31, 2014. As a result of this news, shares of Akorn fell $4.38, or over 8%, on unusually heavy volume, to close at $49.33 on March 3, 2015.
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