NEW YORK, Nov. 7, 2014 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP ("Labaton Sucharow") filed a securities class action lawsuit on behalf of Woburn Retirement System in the U.S. District Court for the Southern District of New York. The lawsuit was filed on behalf of all persons or entities who, between November 8, 2013 and November 6, 2014, inclusive (the "Class Period"), purchased or otherwise acquired the securities of Salix Pharmaceuticals, Ltd. ("Salix" or the "Company") (Nasdaq:SLXP).
If you purchased or acquired Salix securities during the Class Period as defined above, you are a member of the "Class" and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Southern District of New York no later than January 6, 2015. A lead plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as lead plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as lead plaintiff or have any questions about this lawsuit, you may contact Rachel A. Avan, Esq. of Labaton Sucharow at (800) 321-0476 or (212) 907-0709 or via email at ravan@labaton.com. If you are a member of the Class, you can view a copy of the complaint and join this class action online at http://labaton.com/en/cases/Salix-Pharmaceuticals-Inc.cfm.
Salix, based in Raleigh, North Carolina, is a pharmaceutical company that focuses on treatments for digestive system diseases and disorders. Its top-selling drug, XIFAXAN® (rifaximin) ("Xifaxan"), is an antibiotic that is currently approved to treat traveler's diarrhea and a liver disorder that impairs brain function. Salix primarily sells its products through wholesalers, which then resell and distribute the Company's products to and through pharmacies.
The complaint charges Salix and certain of its present and past officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder. The complaint alleges that the defendants made false and misleading statements and concealed material information regarding deteriorating demand for Xifaxan and other Salix drugs and wholesaler inventory levels of Xifaxan and other Salix drugs, which were significantly greater and rising more rapidly than revealed to investors. The complaint also claims that Salix's reserves for outstanding inventory were understated and, because of this understatement, its reported quarterly and annual net revenue and earnings per share figures were overstated, and that Salix's disclosure controls and procedures and its internal controls over financial reporting and accounting were subject to material weaknesses
The true state of the demand for Xifaxan and other Salix drugs and the consequences for the Company's business were revealed on November 6 and 7, 2014, when Salix disclosed that: (1) its longstanding Chief Financial Officer, Adam C. Derbyshire, had abruptly resigned; (2) its wholesaler inventory levels were three times greater than previously reported and the Audit Committee of Salix's Board of Directors had retained outside counsel as part of an inquiry into the Company's reporting of wholesale inventory of Xifaxan and other drugs; and (3) its previously issued guidance for full-year 2014 revenues would not be met and needed to be reduced by 12.5 percent. In reaction to these revelations, Salix's stock price fell $47.08 per share, or 33.98 percent, to close at $91.47 per share on extraordinary trading volume.
Plaintiff Woburn Retirement System is represented by Labaton Sucharow. Labaton Sucharow represents many of the largest pension funds in the United States and internationally with collective assets under management of more than $2 trillion. With nearly 60 full-time attorneys, Labaton Sucharow's litigation reputation is built on its in-house team of investigators, financial analysts, and forensic accountants. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Labaton Sucharow's offices are located in New York, NY and Wilmington, DE. More information about Labaton Sucharow is available at www.labaton.com.
