A lawsuit was filed for certain investors in shares of Invacare Corporation (NYSE:IVC) over alleged securities laws violations. Deadline: July 23, 2013. NYSE:IVC investors should contact the Shareholders Foundation at mail at shareholdersfoundation.com
San Diego, CA -- (SBWIRE) -- 05/28/2013 -- An investor in shares of Invacare Corporation (NYSE:IVC) filed a lawsuit in the U.S. District Court for the Northern District of Ohio over alleged violations of Federal Securities Laws by Invacare Corporation in connection with certain allegedly false and misleading statements made between July 22, 2010 through December 7, 2011.
Investors who purchased a significant amount of shares of Invacare Corporation (NYSE:IVC) between July 22, 2010 through December 7, 2011, and / or those who purchased NYSE:IVC shares prior to July 2010 and currently hold any of those shares, have certain options and for certain investors are strict and short deadlines running. Deadline: July 23, 2013. NYSE:IVC investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of investors in Invacare Corporation (NYSE:IVC) common stock during the period of July 22, 2010 through December 7, 2011, that Invacare Corporation and certain of its senior executives violated provisions of the Securities Exchange Act of 1934 by issuing allegedly false and misleading press releases, financial statements, filings with the Securities and Exchange Commission ("SEC"), and statements during investor conference calls.
More specifically, the plaintiff alleges that Invacare Corporation and certain of its senior executives misled investors regarding Invacare Corporation's noncompliance with Food and Drug Administration ("FDA") guidelines and Current Good Manufacturing Practices ("CGMP"), and masked the fact that the Company suffered from widespread operational, quality, and regulatory deficiencies.
The plaintiff claims that Invacare Corporation allegedly concealed from investors that it received a series of warnings from the FDA -- known as Forms 483 -- which identified serious compliance violations at its two major United States-based manufacturing facilities.
Invacare Corporation (NYSE:IVC) reported that its annual Total Revenue declined from over $1.5 billion in 2011 to over $1.45 billion in 2012 and that its Net Loss of $4.11 million in 2011 turned into a Net Income of $1.83 million in 2012.
On July 22, 2010, Invacare Corporation reported its second quarter results. Commenting on Invacare's 2010 second quarter results, the interim Chief Executive Officer, stated, “Invacare delivered strong results in three key areas.”
On January 4, 2011, Invacare Corporation commented on an FDA warning letter related to an inspection of the Company’s bed manufacturing facility in Sanford, Florida.
Invacare Corporation said that the warning letter takes issue with Invacare’s compliance with the FDA’s Quality System Regulation, specifically related to Invacare’s ability to establish and maintain adequate procedures to analyze processes and operations and to document actions taken on product complaints.
Shares of Invacare Corporation (NYSE:IVC) grew from $20.45 on July 16, 2010 to as high as $34.00 per share on July 8, 2011.
The plaintiff alleges that over the next several months, Defendants allegedly continued to downplay the scope and significance of Invacare's compliance issues, despite its receipt of two additional Forms 483 in August 2011, which were allegedly concealed from investors.
Then on December 8, 2011, Invacare Corporation announced discussions with the U.S. Food and Drug Administration (FDA).
Invacare Corporation announced that the FDA has requested that the Company negotiate and agree to a consent decree of injunction relating to previously disclosed inspectional observations at the Company’s corporate facility and its wheelchair manufacturing facility in Elyria, Ohio. Invacare said that the FDA has proposed a consent decree that would require suspension of certain operations at the facilities until they are determined by the FDA to be in compliance. Invacare has confirmed that it intends to enter into discussions with the FDA regarding the terms of the consent decree.
Shares of Invacare Corporation (NYSE:IVC) declined from $34.00 per share in early July 2011 to as low as $15.12 per share on December 15, 2011.
On May 24, 2013, NYSE:IVC shares closed at $14.70 per share.
Those who purchased a significant amount of shares of Invacare Corporation (NYSE:IVC) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego