NEW YORK, Nov. 10, 2014 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Salix Pharmaceuticals Ltd. ("Salix" or the "Company") (Nasdaq:SLXP) securities between November 8, 2013 and November 6, 2014, inclusive (the "Class Period").
The complaint alleges that the Company and certain of its officers and/or directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you purchased Salix stock during the Class Period, you may, no later than January 6, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you want more information about the Salix Pharmaceuticals Ltd. Securities Class Action please contact Morgan & Morgan at 1-800-732-5200 or email info@morgansecuritieslaw.com
The complaint also alleges that defendants made certain false and misleading statements and allegedly concealed certain material information regarding deteriorating demand for Salix's top-selling drug XIFAXAN® (rifaximin) ("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.
Furthermore, the complaint alleges that Salix's reserves for outstanding inventory were understated and, because of this understatement, the Company's reported quarterly and annual net revenue and earnings per share figures were overstated. In addition, the complaint alleges Salix's disclosure controls and procedures, and the Company's internal controls over financial reporting and accounting, were subject to material weaknesses.
On November 6 and 7, 2014, Salix disclosed that: (1) the Company's Chief Financial Officer, Adam C. Derbyshire, had abruptly resigned; (2) Salix's wholesaler inventory levels were three times greater than previously reported and Salix's Board of Directors Audit Committee had retained outside counsel in an inquiry into the Company's reporting of wholesale inventory of Xifaxan and other drugs; and (3) the Company's previously issued guidance for full-year 2014 revenues would not be met. Following this news, Salix's stock price fell $47.08 per share, or 33.98%, to close at $91.47 per share on heavy trading volume.
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