Akorn Inc (NASDAQ: AKRX) Investor Securities Class Action Lawsuit 03/04/2015

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Company Name(s): 
Akorn
Case Name: 
Akorn Shareholder Class Action Lawsuit 03/04/2015
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: AKRX
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/04/2015
Class Period Begin: 
05/06/2014
Class Period End: 
04/24/2015
Court of Filing: 
U.S. District Court for the Northern District of Illinois
Deadline To File for Lead: 
05/04/2015
Date Settled: 
12/01/2017
Settlement Amount: 
$24,000,000
Deadline to Participate in Settlement: 
04/20/2018
Settlement Notice: 
Settlement Proof: 
Summary: 

December 1, 2017 - The court preliminarily approved the settlement.

November 20, 2017 - Parties filed a stipulation of settlement.

March 6, 2017 - The court denied defendants' motion to dismiss.

August 9, 2016 - Defendants filed a motion to dismiss.

July 5, 2016 - The lead plaintiffs filed an amended consolidated complaint on behalf of investors who purchased Akorn Inc (NASDAQ: AKRX) common shares between May 6, 2014 and April 24, 2015. The lead plaintiffs allege that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between May 6, 2014 and April 24, 2015.

August 24, 2015 - Lead plaintiffs and lead counsel were appointed and all cases were consolidated.

March 4, 2015 - An investor in shares of Akorn Inc (NASDAQ: AKRX) filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged violations of Federal Securities Laws by Akorn Inc in connection with certain allegedly false and misleading statements made between April 17, 2014 and March 2, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of Akorn Inc (NASDAQ: AKRX) common shares between April 17, 2014 and March 2, 2015, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that as of December 31, 2014, more than eight months after it acquired Hi-Tech and four months after it acquired VersaPharm, Akorn Inc did not yet integrate those subsidiaries into the Company's centralized accounting department and accounting systems, that certain financial and other related data related to Hi-Tech and VersaPharm, which require inclusion in Akorn Inc's annual report to be filed with the SEC on Form 10-K, could not be timely collected and compiled, that due to the aforementioned issues, the Company would be unable to timely complete its assessment of the effectiveness of its internal control over financial reporting as of December 31, 2014, that Akorn Inc's internal control over financial reporting was ineffective and material weaknesses existed relating to the completeness and accuracy of underlying data used in the determination of significant estimates and accounting transactions and accurate and timely reporting of its financial results and disclosures in its Form 10-K, and that as a result of the foregoing, Akorn Inc's public statements were materially false and misleading at all relevant times.

Akorn Inc reported that its annual Total Revenue rose from $31.71 million in 2013 to $601.93 million in 2014 and that its respective Net Income declined from $52.36 million to $40.92 million.

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.

Shares of Akorn Inc (NASDAQ: AKRX0 declined to as low as $47.51 per share on March 3, 2015.