SAN DIEGO and INCLINE VILLAGE, Nev., Sept. 23, 2014 (GLOBE NEWSWIRE) -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of PDL BioPharma, Inc. (Nasdaq:PDLI) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of Nevada. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between November 6, 2013 and September 16, 2014. PDL manages a portfolio of patents and royalty assets.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/pdl-biopharma-inc
PDL Is Accused of Overstating Company Revenues
According to the complaint, shares of PDL dropped over 12% to close at $8.48 on September 17, 2014, after the company filed a Form 8-K with the U.S. Securities and Exchange Commission ("SEC") indicating that the company had been notified by its independent registered accounting firm, Ernst & Young LLP, that it would resign effective September 11, 2014. As detailed in the complaint, the Ernst & Young resignation was only the most recent of several negative disclosures made by the company. Specifically, on May 12, 2014, PDL revealed that it had received a request from the SEC concerning the company's accounting of the royalty and purchase and sale agreement with Depomed, Inc. Then, on August 8, 2014, PDL filed a Form 12b-25 Notification of Late Filing with the SEC allowing for a five-day extension to file its quarterly report for the quarter ended June 30, 2014, because the company needed additional time to address the SEC's comments and finalize its review regarding PDL's acquisition of DepoMed royalty rights.
The complaint further alleges that PDL made false and/or misleading statements and/or failed to disclose that the company was, among other things, overstating total revenues, royalty revenues, and net income, while understating operating expenses. As a result, PDL's financial statements were materially false and misleading during the relevant period.
PDL Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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