A lawsuit was filed by an investor in shares of Avanir Pharmaceuticals Inc (NASDAQ:AVNR) in effort to block parts of a shareholder vote in February and current long-term NASDAQ:AVNR stockholders should contact the Shareholders Foundation at firstname.lastname@example.org
San Diego, CA -- (SBWIRE) -- 01/29/2014 -- An investor in shares of Avanir Pharmaceuticals Inc (NASDAQ:AVNR) filed a lawsuit in effort to block certain parts of the shareholder vote that is scheduled for the company’s February 2014 annual shareholder meeting.
Investors who purchased shares of Avanir Pharmaceuticals Inc (NASDAQ:AVNR) have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
According to the plaintiff the company is trying to continue with tax-deductible performance-based compensation awards under a 2005 plan even though the plan was not reapproved after five years as required by the Internal Revenue Code. The plaintiff says that neither in 2012 or 2013 annual meetings shareholder approval for the 2005 plan was obtained. The plaintiff says that because Avanir Pharmaceuticals has no other plan in place, that was approved by shareholders and that is compliant with the Internal Revenue Code, the compensation committee has been unable to grant tax-deductible performance-based compensation under the Internal Revenue Code since Feb. 11, 2011.
Furthermore, the plaintiff claims that Avanir Pharmaceuticals December regulatory filing to the U.S. Securities and Exchange Commission incorrectly states that such tax deductions are allowed up to $2 million when the law’s limit is $1 million.
Avanir Pharmaceuticals Inc reported that its Total Revenue rose from $10.50 million for the 12 months period that ended on Sept. 30, 2011 to $41.28 million for the 12 months period that ended on Sept. 30, 2012 and that its respective Net Loss declined from $60.63 million to $59.74 million.
Shares of Avanir Pharmaceuticals Inc (NASDAQ:AVNR) grew from $1.78 per share in December 2011 to as high as $5.989 per share on Sept. 9, 2013.
On Sept. 11, 2013, a report was published that alleged that Avanir Pharmaceuticals Inc “has engaged in illegal off-label marketing of Nuedexta and that off-label prescriptions have generated a significant portion of AVNR's Nuedexta revenue to date”. Furthermore, the report stated that Avanir Pharmaceuticals “could face over $100mm in fines and penalties and see its Nuedexta sales plummet following a potential government investigation”. Shares of Avanir Pharmaceuticals Inc (NASDAQ:AVNR) declined on Sept. 11, 2013, to as low as $4.49 per share.
On December 10, 2013, Avanir Pharmaceuticals Inc reported financial results for the three and twelve-months ended September 30, 2013 and announced results for phase II PRIME Study. Avanir Pharmaceuticals said that PRIME, its phase II clinical trial of the investigational drug AVP-923 (dextromethorphan / quinidine) for the treatment of central neuropathic pain in patients with multiple sclerosis did not meet the primary efficacy endpoint. Shares of Avanir Pharmaceuticals Inc declined from $4.34 per share on December 10, 2013, to $2.65 per share on December 18, 2013.
Since then NASDAQ:AVNR shares reached $3.83 per share on January 17, 2014 and closed on January 2, 2014 at $3.55 per share.
Those who purchased shares of Avanir Pharmaceuticals Inc (NASDAQ:AVNR), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
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