Enzymotec Ltd (NASDAQ: ENZY) Investor Securities Class Action Lawsuit 09/05/2014

You must submit the settlement "Proof" form attached below, in order to participate in this settlement. There is a strict deadline of December 26, 2017 by which all claims must be submitted. The instructions for submitting are included in the "Proof" and the "Notice" files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, FOLLOW THE DIRECTIONS IN THE "PROOF".

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Company Name(s): 
Enzymotec
Case Name: 
Enzymotec Shareholder Class Action Lawsuit 09/05/2014
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: ENZY
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/05/2014
Class Period Begin: 
09/27/2013
Class Period End: 
08/04/2014
Court of Filing: 
U.S. District Court for the District of New Jersey
Deadline To File for Lead: 
11/04/2014
Date Settled: 
09/05/2017
Settlement Amount: 
$6,500,000
Deadline to Participate in Settlement: 
12/26/2017
Settlement Notice: 
Settlement Proof: 
Summary: 

The settlement includes all persons who or which
- purchased or otherwise acquired Enzymotec Ltd (NASDAQ: ENZY) common stock during the period September 27, 2013 and August 4, 2014,
- purchased and/or can trace the purchase of shares of Enzymotec Ltd (NASDAQ: ENZY) common stock issued in the Initial Public Offering, and/or
- purchased and/or can trace the purchase of shares of Enzymotec Ltd (NASDAQ: ENZY) common stock issued in the Secondary Public Offering that occurred on or about February 27, 2014.

September 5, 2017 - The court preliminarily approved the settlement.

March 31, 2017 - Parties filed a stipulation of settlement.

December 15, 2015 - The court granted in part and denied in part defendants' motion to dismiss.

July 17, 2015 - Defendants filed a motion to dismiss.

May 18, 2015 - The lead plaintiffs filed an amended complaint.

March 3, 2015 - The lead plaintiffs and lead counsel were appointed.

November 5, 2015 - An additional lead plaintiff motion was filed.

November 4, 2015 - A lead plaintiff motion was filed.

September 5, 2014 - An investor in shares of Enzymotec Ltd (NASDAQ: ENZY) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Enzymotec Ltd in connection with certain allegedly false and misleading statements made in regards of Enzymotec Ltd’s initial public offering on or about September 27, 2013 and August 4, 2014.

According to the complaint the plaintiff alleges on behalf of purchasers of Enzymotec Ltd (NASDAQ: ENZY) securities pursuant and/or traceable to Enzymotec Ltd’s Registration Statement and Prospectus issued in connection with Enzymotec Ltd’s initial public offering (“IPO”) on or about September 27, 2013, and/or on the open market between September 27, 2013 and August 4, 2014, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that the Registration Statement and Prospectus allegedly contained materially false and misleading statements and omitted material information, and that defendants misrepresented and/or failed to disclose between September 27, 2013 and August 4, 2014:

- that Enzymotec Ltd’s Chinese business was subject to material and readily identifiable compliance regulations from the Chinese government,
- that Enzymotec Ltd’s baby formula business in China was jeopardized and subject to increased volatility and decreased revenues,
- that Enzymotec Ltd’s joint venture with AarhusKarlshamn AB, which marketed the popular InFat product, was crumbling and subjected the Company to liability and decreased revenues,
and
- that Defendants’ positive statements about Enzymotec Ltd’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Shares of Enzymotec Ltd (NASDAQ: ENZY) grew from $16.55 per share in September 2013 to as high as $33.44 per share in December 2013.

Enzymotec Ltd reported that its annual Total Revenue rose from $23.02 million in 2011 to $64.97 million in 2013 and that its Net Loss of $0.86 million in 2011 turned into a Net Income of $11.39 million in 2013.

Then on May 14, 2014, Enzymotec Ltd reported its first quarter 2014 unaudited financial results. Among other things, Enzymotec Ltd said that recent changes in Chinese regulations require infant formula manufacturers to make certain changes to their production chain. Shares of Enzymotec Ltd (NASDAQ: ENZY) declined from $20.23 per share on May 13, 2014, to $12.90 per share on May 16, 2014.

Then on August 5, 2014, Enzymotec Ltd reported its second quarter 2014 financial results. Enzymotec Ltd's President and Chief Executive Officer said that "in the second quarter our business experienced operational challenges based on external market dynamics which hindered our financial performance," and that "While we expected these headwinds in the quarter, particularly related to recent regulatory changes in the Chinese infant formula market and weakness in the U.S. and Australian Omega-3 industry”. Shares of Enzymotec Ltd (NASDAQ: ENZY) declined from $14.98 per share on August 4, 2014, to $9.11 per share on August 5, 2014.

On August 29, 2014, Enzymotec Ltd announced new hires to its senior management team.

On September 8, 2014, NASDAQ: ENZY shares closed at $8.38 per share.