A lawsuit was filed by an investor in Akorn, Inc. (NASDAQ:AKRX) shares over alleged wrongdoing by certain directors of Akron, Inc. and NASDAQ:AKRX stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 09/28/2015 -- A shareholder in Akorn, Inc. (NASDAQ:AKRX) shares filed a lawsuit against certain Akorn directors over alleged breaches of fiduciary duties that caused damages to the company and its investors.
Investors who purchased shares of Akorn, Inc. (NASDAQ:AKRX), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 - 1554.
The plaintiff claims that certain executives of Akorn, Inc breached their duties to Akorn, Inc by allegedly concealing delays and errors in accounting for its $640 million acquisition of Hi-Tech Pharmacal Co. and $440 million buy of VersaPharm Inc. The plaintiff claims that while they concealed that information they were making millions in insider deals.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Akorn, Inc. (NASDAQ:AKRX) concerning whether a series of statements by Akorn, regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
On March 2, 2015, after the close of trading, Akorn, Inc. filed a Form 12b 25,Notification Of Late Filing, with the Securities and Exchange Commission ("SEC"), announcing that it would need an extension to file its annual report on Form 10-K for the year ending December 31, 2014. Akorn, Inc. said it experienced unforeseen delays in collecting and compiling certain financial and other related data that would be included in the Form 10-K relating to the VersaPharm and Hi-Tech Pharmacal subsidiaries which were not integrated into the Company's centralized accounting department and accounting systems as of December 31, 2014.
On April 24, 2015 Akorn, Inc announced that it will restate its previously issued financial statements for the annual period ending December 31, 2014 and the quarterly periods ending June 30, 2014, September 30, 2014 and December 31, 2014 due to errors identified during the first quarter 2015 financial review process. Akorn, Inc said that on April 20, 2015, the Audit Committee of the Board of Directors of Akorn, Inc., upon the recommendation of the Company's management concluded that the financial statements for the quarterly periods ending June 30, 2014, September 30, 2014 and December 31, 2014 along with the annual period ending December 31, 2014 should not be relied upon because of errors in the financial statements in those associated periods. Akorn, Inc said that based on management's preliminary assessment, the errors related to the understatements of rebates and other sales allowances are estimated to have resulted in an overstatement to net revenue and pretax income from continuing operations of $20 million to $35 million for the year ending December 31, 2014.
The plaintiff alleges that Akorn's lack of adequate internal controls has caused the company to make the aforementioned false and misleading statements and to allow the management to receive excessive compensation and to make lucrative insider sales in connection with the false and misleading statements.
On August 4, 2015 Akorn, Inc. (Nasdaq:AKRX) announced the appointment of Randall Pollard as Chief Accounting Officer and Interim Chief Financial Officer. Mr. Pollard's appointment follows the departure of Timothy Dick, who has elected to step down as Senior Vice President and Chief Financial Officer.
Those who purchased shares of Akorn, Inc. (NASDAQ:AKRX) have certain options and should contact the Shareholders Foundation.
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