Rigrodsky & Long, P.A.:
-
Do you, or did you, own shares of Salix Pharmaceuticals, Ltd.
(NASDAQ GS: SLXP)?
-
Did you purchase your shares before November 8, 2013, or between
November 8, 2013 and November 6, 2014, inclusive?
-
Did you lose money in your investment in Salix Pharmaceuticals,
Ltd.?
-
Do you want to discuss your rights?
Rigrodsky
& Long, P.A., including former Special Assistant United States
Attorney, Timothy J. MacFall, announces that a complaint has been filed
in the United States District Court for the Southern District of New
York on behalf of all persons or entities that purchased the common
stock of Salix Pharmaceuticals, Ltd. (“Salix” or the “Company”) (NASDAQ
GS: SLXP)
between November 8, 2013 and November 6, 2014, inclusive (the “Class
Period”), alleging violations of the Securities Exchange Act of 1934
against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Salix during the Class Period, or purchased
shares prior to the Class Period and still hold Salix, and wish to
discuss this action or have any questions concerning this notice or your
rights or interests, please contact Timothy
J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2
Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by
e-mail to info@rl-legal.com; or
at: http://www.rigrodskylong.com/investigations/salix-pharmaceuticals-ltd-slxp.
Salix is a specialty pharmaceutical company dedicated to acquiring,
developing and commercializing prescription drugs and medical devices
used in the treatment of a variety of gastrointestinal disorders, which
are those affecting the digestive tract. Its top-selling drug is XIFAXAN®
(rifaximin) (“Xifaxan”), an antibiotic that is currently approved to
treat a condition referred to as “traveler’s diarrhea” and a liver
disorder that impairs brain function. The Complaint alleges that
throughout the Class Period, defendants made materially false and
misleading statements, and omitted materially adverse facts, about the
Company’s business, operations and prospects. Specifically, the
Complaint alleges that the defendants concealed from the investing
public that: (1) Salix’s business prospects and demand for Xifaxan and
its other drugs were materially deteriorating; (2) Salix’s wholesale
inventory levels of Xifaxan and its other drugs were rising more quickly
than wholesalers could sell the drug to pharmacies, and more rapidly
than revealed to investors; (3) Salix’s reserves for outstanding
inventory were understated and, because of this understatement, its
reported quarterly and annual net revenue and EPS figures were
overstated; and (4) Salix’s disclosure controls and procedures and its
internal controls over financial reporting and accounting were subject
to material weaknesses. As a result of defendants’ alleged false and
misleading statements, the Company’s stock traded at artificially
inflated prices during the Class Period.
According to the Complaint, on November 6, 2014, the Company shocked the
markets with a series of disclosures reflecting poor prospects and
corporate misconduct. Among other things, Salix announced that its Chief
Financial Officer abruptly resigned after fourteen years with the
Company. Additionally, the Company revealed a massive increase in
inventory levels for many of its drugs, including Xifaxan. It was also
disclosed that the Company was reducing guidance for full-year 2014 of
$1.6 billion in net product revenues and $475 million in earnings –
projections that had been offered and affirmed repeatedly during the
Class Period.
On this news, shares in Salix plummeted almost 34%, closing at $91.47
per share on November 7, 2014, on trading volume of over 25 million
shares.
If you wish to serve as lead plaintiff, you must move the Court no later
than January 6, 2015. A lead plaintiff is a representative party
acting on behalf of other class members in directing the litigation. In
order to be appointed lead plaintiff, the Court must determine that the
class member’s claim is typical of the claims of other class members,
and that the class member will adequately represent the class. Your
ability to share in any recovery is not, however, affected by the
decision whether or not to serve as a lead plaintiff. Any member of the
proposed 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.
While Rigrodsky
& Long, P.A. did not file the Complaint in this matter, the
firm, with offices in Wilmington, Delaware and Garden City, New York, regularly
litigates securities class, derivative and direct actions, shareholder
rights litigation and corporate governance litigation, including
claims for breach of fiduciary duty and proxy violations in the Delaware
Court of Chancery and in state and federal courts throughout the United
States.
Attorney advertising. Prior results do not guarantee a similar outcome.
Copyright Business Wire 2014