Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Illumina, Inc.
Oklahoma City, OK (December 20, 2016) – On December 16, 2016, a securities class action lawsuit was filed in the United States District Court for the Southern District of California against Illumina, Inc. (NASDAQ: ILMN). 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 July 26, 2016 through October 10, 2016. More specifically, this litigation was filed because throughout the Class Period, Defendants failed to disclose that: (1) Illumina was suffering a large decline in its instrument sales; (2) this decline was damaging Illumina’s revenue; (3) Illumina lacked visibility into trends that could have a substantial impact on its financial results; (4) as such, Illumina’s revenue guidance was unreliable and overstated; and (5) consequently, Illumina’s statements concerning its business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On October 10, 2016, the Company announced estimated third quarter revenue of approximately $607 million, which was lower than the Company's third quarter revenue guidance in the range of $625 million to $630 million. The Company attributed the shortfall to "larger than anticipated year-over-year decline in high throughput sequencing instruments." Illumina concurrently announced that it expected fourth quarter revenue to be flat to slightly up sequentially.
On this news, Illumina's share price fell $45.86, to close at $138.99 on October 11, 2016.
Plaintiff seeks to recover damages on behalf of all Illumina, 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 Tuesday, February 14, 2017 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 firstname.lastname@example.org, 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 Tue, December 20, 2016
by Nancy Beatty filed under