Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Alere, Inc.
Oklahoma City, OK (April 25, 2016) – On April 21, 2016, a securities class action lawsuit was filed in the United States District Court for the District of Massachusetts against Alere, Inc. (NYSE: ALR). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is May 9, 2013 through April 20, 2016. More specifically, this litigation was filed because the Company issued false and misleading statements to investors and/or failed to disclose that: (1) Alere inappropriately related revenue in violation of Generally Accepted Accounting Principles; (2) as a result, Alere's quarterly and annual SEC filings would be late; (3) as a result of the abovementioned, Alere's prearranged merger with Abbott Laboratories would be questionable; (4) Alere lacked satisfactory internal accounting and financial controls; and (5) as a result, Alere's public statements were materially false and misleading at all relevant times.
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, the Company’s share price declined to close at $49.32.
Lastly, on April 20, 2016, the CEO of Abbott Laboratories (“Abbott”) would not affirm Abbott’s commitment to merge with Alere. On this news, the Company’s share fell to a closing price of $43.36.
Plaintiff seeks to recover damages on behalf of all Alere, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, June 20, 2016 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to email@example.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Mon, April 25, 2016
by Nancy Beatty filed under