NEW YORK, April 22, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Alere Inc. (“Alere” or the “Company”) (NYSE:ALR) of the June 20, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of all those who purchased Alere securities between May 9, 2013 and April 20, 2016 (the “Class Period”). The case, Godinez v. Alere Inc. et al, No. 1:16-cv-10766 was filed on April 21, 2016, and has been assigned to Judge Patti B. Saris.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose: (1) that the Company improperly recognized and reported revenue in violation of Generally Accepted Accounting Principles (“GAAP”); (2) that, as a result, the Company’s quarterly and annual Securities and Exchange Commission (“SEC”) filings would be delayed; (3) that, as a result, the Company’s planned merger with Abbott Laboratories would be thrown into doubt; (4) that the Company lacked suitable internal controls over accounting and financial reporting; and (5) that, as a result, the Company’s financial statements, as well as statements about Alere’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
Specifically, the lawsuit alleges that on February 26, 2016, Alere disclosed that it was unable to file its Form 10-K for 2015 because the Company was analyzing aspects of revenue recognition in Africa and China and potential implications on evaluation of internal controls over financial reporting. In addition, the Company disclosed that it received a subpoena from the SEC in connection with a formal SEC investigation which requested revenue recognition and information relating to the sales of products and services to end-users in Africa.
Then on March 15, 2016, the Company disclosed that it would not file its Form 10-K for 2015 within the extension period because of its continued analysis of aspects of revenue recognition in Africa and China for the years 2013, 2014 and 2015. Additionally, the Company disclosed that it received a grand jury subpoena from the United States Department of Justice requiring documents relating to the sales, sales practices and dealings with third-parties in Africa, Asia and Latin America and other matters related to the U.S. Foreign Corrupt Practices Act. On this news, share price fell from $53.46 per share on March 14, 2016 to a closing price of $49.32 on March 15, 2016—a $4.14 or a ~7.74% drop.
Lastly, on April 20, 2016, the CEO of Abbott Laboratories (“Abbott”) would not affirm Abbott’s commitment to merge with Alere. On this news, share price fell from $49.47 per share on April 19, 2016 to a closing price of $43.36 on April 20, 2016—a $6.11 or a ~12.35% drop.
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Take Action
If you invested in Alere stock or options between May 9, 2013 and April 20, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/ALR. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Alere’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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