NEW YORK, May 20, 2016 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Alere Inc. (“Alere” or the “Company”) (NYSE:ALR) and certain of its officers. The class action, filed in United States District Court, District of Massachusetts, and docketed under 16-cv-10834, is on behalf of a class consisting of all persons or entities who purchased Alere securities between May 9, 2013 and April 20, 2016 inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Alere securities during the Class Period, you have until June 20, 2016 to seek appointment as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased. Click here to join this action.
Alere provides diagnostic tests for infectious disease, cardiometabolic disease, and toxicology.
On February 1, 2016, Alere disclosed that it had entered into a merger agreement with Abbot Laboratories. On this news, Alere’s stock price climbed $16.91, more than 45%, to close at $54.11 per share on February 1, 2016.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Alere’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Alere improperly recognized and reported revenue in violation of Generally Accepted Accounting Principles; (ii) Alere’s quarterly and annual SEC filings would thus be delayed; (iii) therefore, Alere’s planned merger with Abbott Laboratories would be thrown into doubt; (iv) Alere lacked adequate internal controls over accounting and financial reporting; and (v) consequently, Alere’s financial statements, as well as Defendants’ statements about Alere’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On February 26, 2016, Alere disclosed its inability to timely file its Annual Report for 2015 because it was investigating “certain aspects of revenue recognition in Africa and China” and evaluating “internal controls over financial reporting for the year ended December 31, 2015.” Alere also disclosed that it had received an SEC subpoena on January 14, 2016, seeking “additional information related to sales of products and services to end-users in Africa, as well as revenue recognition” regarding the same.
On this news, Alere stock fell $0.48 to close at $53.30 on February 29, 2016, the next trading day.
On March 15, 2015, Alere disclosed its inability to file its Annual Report for 2015 within the 15-day extension period because the previously disclosed investigation remained ongoing and had expanded in scope. Finally, the Company disclosed that on March 11, 2016, the Company received a subpoena from the U.S. Department of Justice seeking information on “sales, sales practices and dealings with third-parties (including distributors and foreign governmental officials) in Africa, Asia and Latin America and other matters related to the U.S. Foreign Corrupt Practices Act.”
On this news, Alere stock fell $4.14 per share, or 9.2%, to close at $49.32 on March 15, 2016, on unusually heavy volume.
On April 20, 2016, the CEO of Abbott Laboratories, during the company’s quarterly earnings call, would not affirm Abbott Laboratories’ commitment to merge with Alere.
On this news, Alere stock fell $6.11, or 12.3% per share, to close at $43.36 on April 20, 2016, on unusually heavy volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com