Pacific Biosciences Of California Investors Files Class Action Lawsuit Over Alleged Securities Laws Violations

If you purchased shares of Pacific Biosciences of California (NASDAQ: PACB) pursuant and/or traceable to the Pacific Biosciences of California’s $230million initial public stock offering on October 27, 2010, you have certain options and there are strict and short deadlines running. NASDAQ: PACB investors who purchased their PACB stocks on or shortly after October 27, 2010 should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Pacific Biosciences of California
Case Name: 
Pacific Biosciences of California Shareholder Class Action 11/25/2011
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: PACB
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/25/2011
Class Period Begin: 
10/27/2010
Deadline To File for Lead: 
01/31/2012
Summary: 

San Diego, Nov. 25, 2011 (Shareholders Foundation) -- Two investors in shares of Pacific Biosciences of California (NASDAQ:PACB) filed a lawsuit against Pacific Biosciences of California, Inc. over alleged Violations of Federal Securities Laws.

According to the complaint the plaintiff alleges on behalf of all persons or entities, who purchased or otherwise acquired the common stock of Pacific Biosciences of California (NASDAQ: PACB) pursuant and/opr traceable to the Pacific Biosciences of California’s $230million initial public stock offering on October 27, 2010, that the biotechnology company, certain of its officers and directors and underwriters violated Federal Securities Laws in connection with its October 27, 2010 IPO.

Pacific Biosciences of California raised approximately $200 million in its initial public offering of stock on October 27, 2010. The Company’s initial focus is on the DNA sequencing market where it has developed and introduced a third-generation sequencing platform using its SMRT technology, the Pacific Biosciences of California RS system.

On August 4, 2011, Pacific Biosciences of California announced its second quarter 2011 financials. While Pacific Biosciences’ sales revenues, net income and EPS beat analyst expectations, the market was shocked to learn that Pacific Biosciences of California had received only seven new orders for its RS system during the quarter, when the consensus in the market was that at least 15 new orders could be had, so the lawsuit.

The next day an underwriter issued a report cutting its rating on Pacific Biosciences of California from overweight to neutral.

On August 5, 2011, NASAQ PACB fell more than 34% from its close of $9.90 on August 4th to $6.50 on August 5th.

Then on September 20, 2011, Pacific Biosciences of California, Inc. announced that it implemented a reduction in its workforce of approximately 130 employees, or approximately 28% of its total workforce.
Pacific Biosciences of California said it took the action in consideration of uncertainties associated with the economic environment and to position the Company for long-term success.

NASDAQ PACB stocks fell 2%5 from $5.56 on September 20th, to $4.25 on September 21st.

In fact, in slightly over one year shares of Pacific Biosciences of California (Public, NASDAQ: PACB) fell from almost $17 on October 28, 2010 to as low as $2.45 on November 25, 2011.