NEW YORK, April 27, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of all persons or entities that purchased the common stock of Akorn, Inc. ("Akorn" or the "Company") (Nasdaq:AKRX) between April 17, 2014 and March 2, 2015, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers.
If you purchased Akorn stock during the Class Period, you may, no later than May 4, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported 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.
If you want more information about the Akorn Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com.
Akorn engages in the manufacture and marketing of diagnostic and therapeutic ophthalmic pharmaceuticals products, hospital drugs, and injectable pharmaceuticals in the United States and internationally. The Company offers products in various specialty areas, including ophthalmology, antidotes, anti-infectives, pain management, anesthesia and vaccines.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, 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 and four months after it acquired 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 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.
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.
Following this news, shares of Akorn fell $4.38, or over 8%, on unusually heavy volume, to close at $49.33 on March 3, 2015.
On April 24, 2015, the Company said it would have to restate its 2014 financials, estimating that it overstated revenue and pre-tax income from continuing operations by $20 million to $35 million. On April 27, 2015, Akorn shares were down more than 20% in morning trading.
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