NEW YORK, Nov. 12, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against Salix Pharmaceuticals Ltd ("Salix" or the "Company") (Nasdaq:SLXP) and certain of its officers. The class action, filed in United States District Court, Eastern District of North Carolina, Western Division, and docketed under 14-cv-00804, is on behalf of a class consisting of all persons or entities who purchased Salix securities between August 7, 2014 and November 6, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Salix securities during the Class Period, you have until January 6, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Salix Pharmaceuticals, Ltd., a Delaware corporation, acquires, develops, and commercializes prescription drugs and medical devices to treat various gastrointestinal diseases in the United States. Salix Pharmaceuticals, Ltd. was founded in 1989, is headquartered in Raleigh, North Carolina, and its shares trade on the NASDAQ under the ticker symbol "SLXP".
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company overstated demand for Salix's drugs; (2) the Company understated wholesaler inventory levels for Salix's products; (3) Salix's internal controls over financial reporting was ineffective; and (4) as a result of the foregoing, Salix's public statements were materially false and misleading at all relevant times.
On November 6, 2014, after the close of trading, the Company issued a press release announcing the resignation of its Chief Financial Officer, Adam C. Derbyshire. Minutes after issuing the press release, the Company issued an earnings release and filed a Form 8-K announcing its financial and operating results for the third quarter ending September 30, 2014 and hosted an earnings conference call with investors and analysts.
The Company also disappointed investors by reporting earnings and revenues for the third quarter and providing guidance for fourth quarter earnings and revenues, below the projection of analysts. According to the release, the Company had revenue of $355 million in the third quarter, up 49% from the same period last year, and reported earnings per share of $1.53. This was below the consensus among Wall Street analysts, which had expected revenue of $392 million and earnings per share of $1.55. In the earnings release, the Company also provided guidance for the fourth quarter, forecasting that earnings per share will be $1.16, on revenue of $325 million, compared with the average projection of analysts of $1.95 per share on revenue of $436 million.
As a result of this news, shares of Salix fell $47.08 per share, or 33.98%, to close at $91.47 per share on heavy trading volume, on November 7, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
