Federman & Sherwood Announces the Filing of a Securities Class Action
Lawsuit against Retrophin, Inc.
Oklahoma City, OK (October 24, 2014) – On October 20, 2014, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Retrophin, Inc. (NASDAQ: RTRX). 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 March 27, 2014 through September 30, 2014. More specifically, this litigation was filed because, throughout the Class Period, defendants made false and/or misleading statements, and failed to disclose material adverse facts about Retrophin, Inc.'s ("Retrophin" or the "Company") business, operations, prospects and performance. More specifically, during the Class Period set forth above, defendants made false and/or misleading statements and/or failed to disclose that: (i) Retrophin's founder and Chief Executive Officer was committing stock-trading irregularities and other violations of the Company's Incentive Compensation Plan; (ii) said irregularities included grants of shares in violation of the Company's Incentive Compensation Plan; (iii) the Company failed to disclose these stock grants to employees; and (iv) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
After the close of trading on September 16, 2014, the Company issued a press release and filed a Form 8-K with the SEC announcing that on September 15, 2014, it had reached an agreement with its Chief Financial Officer, Marc Panoff, to terminate his employment effective as of February 28, 2015. Also, previously on September 10, 2014, the company announced that Jeffrey Paley, MD had abruptly stepped down as a member of the Board of Directors for Retrophin. As a result of this news, shares of Retrophin fell over 8%, on unusually heavy trading, to close at $11.46 on September 17, 2014.
Then, on September 30, 2014, after the close of trading, the Company issued a press release announcing that its Board of Directors had terminated its Chief Executive Officer, Martin Shkreli, effective immediately, and had appointed Stephen Aselage as interim Chief Executive Officer. Upon this news, shares of Retrophin fell almost 4.5%, on unusually heavy trading, to close at $8.62 on October 1, 2014.
Plaintiff seeks to recover damages on behalf of all Retrophin, 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 Friday, December 19, 2014 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: Lynn.
Posted on Fri, October 24, 2014
by K. Lynn Nunn filed under