Monday, February 29, 2016

FORBES: Firm Wins Historic Appeal in Court Known for Skepticism of Investors’ Claims



Faruqi & Faruqi, LLP Wins Historic Appeal in Fourth Circuit

In a significant victory on behalf of investors in biopharmaceutical company, ChelseaTherapeutics, International Ltd., on March 16, 2015, the United States Court of Appeals for the Fourth Circuit determined that the claims should be remanded for further proceedings because they had been erroneously dismissed by the district court.  This was the first successful appeal of a securities fraud class action in the Fourth Circuit since the enactment of the Private Securities Litigation Reform Act in 1995.
The claims alleged that the company and certain officers and directors violated the federal securities laws by intentionally concealing communications with the U.S. Food and Drug Administration concerning the likelihood of approval of the company’s sole product candidate.
The circuit court held that “the district court erred in taking judicial notice of the challenged documents filed with the SEC, because those documents did not relate to the contents of the complaint[,]” and that “based on the defendants’ failure to disclose critical information about the weaknesses of the new drug application, the plaintiffs’ allegations were sufficient to support a strong inference of scienter.”
Upon remand, the district court denied the defendants’ motion to dismiss and permitted the case to proceed to discovery.

About Faruqi & Faruqi, LLP

To schedule a free consultation with our attorneys and to learn more about your legal rights, call our offices today (212-983-9330).

About Megan Sullivan

Megan M. Sullivan is a Senior Associate in Faruqi & Faruqi, LLP’s New York office and focuses her practice on securities litigation, representing plaintiffs in federal securities fraud class actions.  Her successes include securing lucrative settlements in five securities class actions in the past two years alone.  Please feel free to contact Megan regarding any questions concerning this blog post or any questions related to F&F’s practice areas.  

Tuesday, February 16, 2016

Faruqi & Faruqi Alert: Skullcandy, Inc.


Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Skullcandy, Inc. (“Skullcandy” or the “Company”) (NASDAQ:SKUL) of the April 12, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Utah on behalf of all those who purchased Skullcandy securities between August 7, 2015 and January 11, 2016 (the “Class Period”).  The case, Davis v. Skullcandy et al, No. 2:16-cv-00121 was filed on February 12, 2016, and has been assigned to Judge Robert J. Shelby.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that its financial, revenue, net income and earning guidelines for the third quarter and full year 2015 as issued on the Company second quarter filings were unattainable and by failing to inform the charge and associated tax rate impacts associated with its largest Chinese distributor. Furthermore, the complaint alleges that Defendant Rick Alden and Ptarmagin, an entity controlled by Alden, took advantage of artificially inflated prices to unload a large amount of personal holdings of Skullcandy common stock into the market for a profit.
On January 11, 2016, the Company updated its financial outlook for the fourth quarter 2015, announcing that it had missed its quarterly net sales projections.
After the announcement, Skullcandy’s share price fell from $4.55 per share on January 11, 2016 to a closing price of $3.26 on January 12, 2016 —a $1.29 or a 28.6% drop.
Take Action
If you invested in Skullcandy securities between August 7, 2015 and January 11, 2016 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comFaruqi & Faruqi, LLP also encourages anyone with information regarding Skullcandy’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Faruqi & Faruqi Alert: Primero Mining Corp.


Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Primero Mining Corp. (“Primero” or the “Company”) (NYSE:PPP) of the April 15, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Primero securities between October 5, 2012 and February 3, 2016 (the “Class Period”).  The case, Loftus v. Pimero Mining Corp. et al, No. 2:16-cv-01034 was filed on February 15, 2015.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose the issues of tax compliance of Primero’s Mexican subsidiary, Primero Empresa Minera, S.A. de C.V.
Specifically, on February 3, 2016, Primero disclosed that Servicio de Administraci√≥n Tributaria (“SAT”), Mexico’s tax authority, filed a legal claim against the Company’s Mexican subsidiary in order to nullify the Advance Pricing Agreement (“APA”) filed by Primero in October 2011 and issued by the SAT in 2012; the APA was submitted to the SAT to confirm that the Company was properly recording revenue and taxes from sales under Primero’s silver purchase agreement with Silver Wheaton Corp.
After the announcement, Primero’s share price fell from $2.63 per share on February 3, 2016 to a closing price of $1.89 per share on February 4, 2016—a $0.74 or 28.1% drop.
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Take Action
If you invested in Primero October 5, 2012 and February 3, 2016 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comFaruqi & Faruqi, LLP also encourages anyone with information regarding Primero’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Friday, February 12, 2016

Faruqi & Faruqi Alert: Tower Semiconductor Ltd.


Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Tower Semiconductor Ltd. (“Tower Semiconductor” or the “Company”) (NasdaqGS:TSEM) of the March 22, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Tower Semiconductor securities between April 30, 2012 and January 13, 2016 (the “Class Period”).  The case, Brandon Walker v. Tower Semiconductor Ltd et al, No. 16-cv-00487 was filed on January 22, 2016, and has been assigned to Judge Christina A. Snyder.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by issuing false and/or misleading statements and/or failed to disclose that: (1) the value of net tangible assets of the acquisition of TowerJazz Japan Ltd. from Micron Technology Inc. was artificially inflated; (2) the value of net tangible assets of the acquisition of 51% of TowerJazz Panasonic Semiconductor Co., Ltd. from Panasonic was artificially inflated; (3) the Series F Debentures were incorrectly accounted for to understate debt; and (4) as a result, Defendants’ statements about Tower Semiconductor’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Specifically, on January 14, 2016, Spruce Point Capital Management issued a report about the Company in connection with the aforementioned violations.
On this news, share price fell $1.23 per share to close at $11.24 per share on January 14, 2016, a 9.86% drop in share price.
Take Action
If you invested in Tower Semiconductor securities between April 30, 2012 and January 13, 2016 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comFaruqi & Faruqi, LLP also encourages anyone with information regarding Tower Semiconductor ‘s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Thursday, February 11, 2016

Faruqi & Faruqi Investigation: Apollo Education Group, Inc.



Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of Apollo Education Group, Inc. (“Apollo” or the “Company”) (NASDAQ:APOL) for potential breaches of fiduciary duties in connection with the sale of the Company to consortium led by private investment firm The Vistria Group for approximately $1.1 billion.
The Company’s stockholders will only receive $9.50 in cash for each share of Company common stock they own. However, the offer is below at least one analyst target price of $10 per share and the 52-week high of $28.66 per share.
If you own common stock in Apollo and wish to obtain additional information and protect your investments free of charge, please contact Faruqi & Faruqi's Juan Monteverde, Esq. either via e-mail at jmonteverde@faruqilaw.com or by telephone at (877) 247-4292 or (212) 983-9330. 

Faruqi & Faruqi Investigation: LeapFrog Enterprises, Inc.

Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of  LeapFrog Enterprises, Inc. (“LeapFrog” or the “Company”) (NYSE:LF) for potential breaches of fiduciary duties in connection with the sale of the Company to VTech Holdings Limited for approximately $72 million. 
The Company’s stockholders will only receive $1.00 in cash for each share of Company common stock they own. However, the offer is below at least one analyst target price of $3.50 per share and the 52-week high of $2.68 per share.
If you own common stock in LeapFrog and wish to obtain additional information and protect your investments free of charge, please fill out the form below or contact Faruqi & Faruqi's Juan Monteverde, Esq. either via e-mail at jmonteverde@faruqilaw.com or by telephone at (877) 247-4292 or (212) 983-9330. 

Faruqi & Faruqi Investigation: Multi-Fineline Electronix, Inc.


Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of Multi-Fineline Electronix, Inc. (“Multi-Fineline Electronix” or the “Company”) (NasdaqGS:MFLX) for potential breaches of fiduciary duties in connection with the sale of the Company to Suzhou Dongshan Precision Manufacturing Co., Ltd. for approximately $415.73 million. 
The Company’s stockholders will only receive $23.95 in cash for each share of Company common stock they own. However, this consideration is below Multi-Fineline Electronix’s 52-week high of $26.05.
If you own common stock in Multi-Fineline Electronix and wish to obtain additional information and protect your investments free of charge, please contact Faruqi & Faruqi's Juan Monteverde, Esq. either via e-mail at jmonteverde@faruqilaw.com or by telephone at (877) 247-4292 or (212) 983-9330. 

Faruqi & Faruqi Alert: MannKind Corp.


Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in MannKind Corp. (“MannKind” or the “Company”) (NASDAQ:MNKD) of the March 15, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased MannKind securities between August 10, 2015 and January 5, 2016 (the “Class Period”).  The case, Eric Ardolino v. MannKind Corporation et al, No. 2:16-cv-00348 was filed on January 15, 2016, and has been assigned to Judge R. Gary Klausner.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to properly represent the market demand and profitably sales of its flagship insulin inhalant, Afrezza.
Specifically, on January 5, 2016, MannKind announced the termination of its license and collaboration agreement with pharmaceutical distributor Sanofi-Aventis. That same day, Bloomberg reported that the agreement was terminated due to a low level of prescriptions despite Sanofi's best efforts.
After the announcement, MannKind’s share price fell from $1.45 per share on January 4, 2016 to a closing price of $0.75 on January 5, 2016 —a $0.70 or a 48.3% drop.
On this news, MannKind’s share price fell from $0.75 per share on January 5, 2016 to a closing price of $0.73 on January 6, 2016 —a 2.7% drop.
Take Action
If you invested in MannKind securities between August 10, 2015 and January 5, 2016 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comFaruqi & Faruqi, LLP also encourages anyone with information regarding MannKind’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Monday, February 8, 2016

Faruqi & Faruqi Alert: Insys Therapeutics, Inc.


Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Insys Therapeutics, Inc. (“Insys” or the “Company”) (NASDAQ:INSY) of the April 4, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Arizona on behalf of all those who purchased Insys securities between March 3, 2015 and January 25, 2016 (the “Class Period”).  The case, Di Donato v. Insys Therapeutics Incorporated et al, No. 2:16-cv-00302 (D. Ariz. Feb 02, 2016) was filed on February 2, 2016, and has been assigned to Judge Neil V. Wake.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that the Company was engaged in the illegal and improper off-labeling marketing of its core product, Subsys.
Specifically, the Southern Investigating Report Foundation (“SIRF”) published articles on April 24, 2015 and December 3, 2015 as well as on January 25, 2016 alleging that the Company and key executives had been operating a deceptive scheme in order to bolster the illegal off-label marketing and sale of Subsys, had been pressuring employees to promote this scheme, and had not been transparent about cases of patients who had either died or suffered adverse events while being treated with Subsys.
As a result of these articles, Insys’ stock price dropped from $31.21 per share (adjusted for the 2:1 stock split) on April 24, 2015 to $21.58 per share on January 25, 2016, a decline of more than 30%.
Take Action
If you invested in Insys securities between March 3, 2015 and January 25, 2016 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comFaruqi & Faruqi, LLP also encourages anyone with information regarding Insys’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Faruqi & Faruqi Alert: Tetraphase Pharmaceuticals, Inc.


Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Tetraphase Pharmaceuticals, Inc. (“Tetraphase” or the “Company”) (NASDAQ:TTPH) of the March 28, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of all those who purchased Tetraphase securities between March 5, 2015 and September 8, 2015 (the “Class Period”).  The case, Harrington v. Tetraphase Pharmaceuticals Inc. et al, No. 1:16-cv-10133 (D. Mass. Jan 28, 2016) was filed on January 28, 2016, and has been assigned to Judge Leo T. Sorokin.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by misrepresenting the capacity for clinical approval of Eravacycline, an intravenous (IV) to oral transition therapy for the treatment of complicated urinary tract infections, by both the U.S. Food and Drug Administration (“FDA”) and the European Medicines Agency (“EMA”).
Specifically, on September 8, 2015, Tetraphase announced negative results of the pivotal portion of Eravacycline during the IGNITE2 phase 3 clinical trial. The Company disclosed that Eravacycline had failed to achieve its primary endpoint of statistical non-inferiority compared to Levofloxacin under the guidelines established by both the FDA and EMA.
After this announcement, Tetraphase’s share price fell from $44.78 per share on September 8, 2015 to a closing price of $8.36 on September 10, 2015—a $36.42 or a 81.3% drop.
Take Action
If you invested in Tetraphase securities between March 5, 2015 and September 8, 2015 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comFaruqi & Faruqi, LLP also encourages anyone with information regarding Tetraphase’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Friday, February 5, 2016

Faruqi & Faruqi Alert: United Development Funding IV


Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in United Development Funding IV (“United Development” or the “Company”) (NASDAQ:UDF) of the February 19, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Northern District of Texas on behalf of all those who purchased United Development securities between June 4, 2015 and December 10, 2015 (the “Class Period”).  The case, The Charles G. and Rose M. Fairbanks Living Trust v. United Development Funding IV et al, No. 3:15-cv-04055 (N.D. Tex. Dec 23, 2015) was filed on December 23, 2015, and has been assigned to Judge Sam R. Cummings.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by operating a Ponzi-like real estate scheme and by failing to disclose that the Company was being investigated by the Securities and Exchange Commission.
After this news, United Development’s share price fell $6.05 from $17.20 per ADR on December 9, 2015 to close at $11.15 per share on December 10, 2015, or approximately 35.2%.
After the market closed that day, the Company disclosed that since April 2014 it has been cooperating in a nonpublic fact-finding investigation by the SEC into its operation and management of previous United Development related entities and funds.
On this news, United Development’s share price fell $2.50 from $11.15 per share on December 10, 2015 to close at $8.55 per share on December 11, 2015, or approximately 22.4%.
Take Action
If you invested in United Development securities June 4, 2015 and December 10, 2015 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comFaruqi & Faruqi, LLP also encourages anyone with information regarding United Development’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Faruqi & Faruqi Alert: Aixtron SE


Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Aixtron SE (“Aixtron” or the “Company”) (NASDAQ:AIXG) of the March 4, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Aixtron securities between September 25, 2014 and December 9, 2015 (the “Class Period”).  The case, Bettis v. Aixtron SE et al, No. 1:16-cv-00025 (S.D.N.Y. Jan 04, 2016) was filed on January 4, 2016, and has been assigned to Judge Analisa Torres.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing disclose that its AIX R6 MOCVD systems did not meet its customer’s specific qualification requirements. This in turn led to the Company to fail to execute an agreement to deliver 50 of the Company’s AIX R6 MOCVD systems to San’an Optoelectronics in China, causing a substantial negative impact on the Company’s prospects.
Specifically, on October 13, 2015, the Company announced that it would its previously issued revenue guidance for 2015 from 220 million – 250 million EUR down to 190 million – 200 million EUR due to a postponement of shipments to San’an Optoelectronics from 2015 to 2016.
After the announcement, Aixtron’s ADR price fell $0.84 from $6.55 per ADR on October 12, to close at $5.71 per ADR on October 13, 2015, or approximately 12.8%.
Then, on December 9, 2015, Aixtron announced that it had reached an agreement with San’an Optoelectronics to substantially reduce the volume of R6 MOCVD systems ordered from 50 to the 3 that had already been delivered, noting that the customer’s specific qualification requirements were not achieved.
On this news, over two trading days, Aixtron’s ADR price fell $3.05 from $6.55 per ADR on October 12, to close at $5.71 per ADR on October 13, 2015, or approximately 12.8%.
Take Action
If you invested in Aixtron securities between September 25, 2014 and December 9, 2015 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comFaruqi & Faruqi, LLP also encourages anyone with information regarding Aixtron’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Faruqi & Faruqi Alert: KaloBios Pharmaceuticals, Inc.


Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in KaloBios Pharmaceuticals, Inc. (“KaloBios” or the “Company”) (OTC:KBIOQ) of the February 16, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased KaloBios securities between November 19, 2015 and December 17, 2015 (the “Class Period”). The case, Sciabacucchi v. KaloBios Pharmaceuticals, Inc. et al, No. 3:15-cv-05992 was filed on December 23, 2015, and has been assigned to Judge Charles R Breyer.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.
Specifically, the Company made false and/or misleading statements and/or failed to disclose that Defendant Martin Shkreli (“Shkreli”) was currently the subject of a federal criminal investigation; the Company’s CEO was engaged in a scheme involving the illegal use of stock from Retrophin, Inc. to pay off debts associated with other business ventures; the discovery or revelation of the scheme would likely undermine the Company’s operations and prospects; and as a result of the foregoing, Defendants’ statements about KaloBios’ business, operations, and prospects were materially false and/or misleading at all relevant times.
During pre-market on December 17, 2015, Defendant Shkreli was arrested by federal authorities after a grand jury indicted Shkreli on seven counts of fraud. According to federal prosecutors, Defendant Shkreli allegedly ran his companies like a Ponzi scheme, where he used each subsequent company to pay off defrauded investors in the prior company.
On this news, shares of the Company declined $12.56 per share, approximately 53%, during pre-market trading on December 17, 2015. Trading of the Company’s shares was halted on December 17, 2015 before the open of the market.
KaloBios resumed trading on January 13, 2016. On February 4, 2016, KaloBios stock closed at $2.45 per share.
Take Action
If you invested in KaloBios securities between November 19, 2015 and December 17, 2015 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comFaruqi & Faruqi, LLP also encourages anyone with information regarding KaloBios’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Faruqi & Faruqi Alert: Nimble Storage, Inc.


Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Nimble Storage, Inc. (“Nimble Storage” or the “Company”) (NYSE:NMBL) of the February 15, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Nimble Storage common stock between May 27, 2015 and November 19, 2015 (the “Class Period”). The case, Guardino v. Nimble Storage, Inc. et al, No. 3:15-cv-05991 was filed on December 23, 2015, and has been assigned to Judge Susan Yvonne Illston.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose material information that Nimble Storage was being negatively impacted by intense competition from well-entrenched, large competitors who were reducing prices in order to maintain market share. In addition, Nimble Storage had made a decision to focus its sales and marketing efforts towards the large enterprises market and to reduce sales efforts in the U.S. commercial market. As a result of this change in strategy and the intense price competition, Nimble Storage lost sales in both sales channels.
On November 19, 2015, after the close of the markets, the Company issued a press release announcing its disappointing fiscal third quarter financial results.
After the announcement of the Company’s disappointing third quarter financial results, Nimble Storage common stock fell $10.34 per share the next day to close at $10.05 per share, a 50.71% drop, on November 20, 2015.
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Take Action
If you invested in Nimble Storage common stock between May 27, 2015 and November 19, 2015 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comFaruqi & Faruqi, LLP also encourages anyone with information regarding Nimble Storage’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.