An investigation on behalf of current long term investors in Emergent Biosolutions Inc (NYSE:EBS) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NYSE:EBS stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 09/20/2016 -- Certain directors of Emergent Biosolutions are under investigation over possible wrongdoing. The investigation was announced for investors in shares of Emergent Biosolutions Inc (NYSE:EBS) concerning potential breaches of fiduciary duties by certain directors of Emergent Biosolutions Inc.
Investors who are current long term investors in Emergent Biosolutions Inc (NYSE:EBS) shares, have certain options and should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
The investigation by a law firm for current long term investors in NYSE:EBS stocks follows a lawsuit filed recently against Emergent Biosolutions Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:EBS stocks, concerns whether certain Emergent Biosolutions directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the District of Maryland the plaintiff alleges that with no reasonable basis to believe that the Company's renewal of its contract with the U.S. government would call for the same level of, much less increased, purchases of BioThrax, Emergent Biosolutions Inc claimed it remained on track to receive the lucrative renewal of its five-year exclusive anthrax vaccine procurement contract, that Emergent also repeatedly emphasized an ongoing strong demand for BioThrax in light of the U.S. government's funding of Emergent's massive expansion of its BioThrax production facility, claiming with no reasonable basis that the expansion would enable the Company to manufacture some 20 to 25 million additional doses of BioThrax annually, which the U.S. government would purchase over the following five-year period in order to build the U.S. Strategic National Stockpile ("SNS") of anthrax vaccine to 75 million doses, and that as a result of defendants' allegedly materially false and misleading statements, Emergent Biosolutions Inc common stock traded at artificially inflated prices, reaching between January 11, 2016 and June 21, 2016 high of $43.95 per share, and enabling certain of the defendants to sell their personally held shares of Emergent Biosolutions Inc common stock for proceeds of over $14.5 million.
On June 22, 2016, Emergent Biosolutions Inc announced that the U.S. government had issued two official solicitation notices indicating that it would only be purchasing 29.4 million doses of the BioThrax vaccine for its SNS over the following five years – approximately one-third less than the 44.75 million doses in the original contract and far less than the 75 million doses the Company had led the investment community to believe the U.S. government sought to purchase. Emergent Biosolutions Inc also disclosed that instead of more first-generation BioThrax anthrax vaccine, the U.S. government was seeking to procure a newer, faster-working next-generation anthrax vaccine, once one was approved, and that it was putting its supply bid for the rest of its anthrax vaccine procurement out to other companies, such that Emergent stood to lose its lucrative exclusivity. NYSE:EBS shares declined to $27.01 per share on June 28, 2016.
On September 19, 2016, NYSE:EBS shares closed at $26.99 per share.
Those who purchased shares of Emergent Biosolutions Inc have certain options and should contact the Shareholders Foundation.
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