Sequenom Inc (NASDAQ: SQNM) Investor Securities Class Action Lawsuit 04/30/2009

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Company Name(s): 
Case Name: 
Sequenom Shareholder Class Action Lawsuit 04/30/2009
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the Southern District of California
Deadline To File for Lead: 
Date Settled: 
Settlement Amount: 
Deadline to Participate in Settlement: 
Settlement Notice: 
Settlement Proof: 

December 10, 2010 - The court issued an order authorizing the disbursement of the net settlement fund.

May 4, 2010 - - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

January 28, 2010 - The court preliminarily approved the settlement.

January 21, 2010 - Parties filed a stipulation of settlement.

September 1, 2009 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.

June 30, 2009 - Lead plaintiff motions were filed.

May 1, May 4-8, and May 11, 2009 - Numerous additional investors filed complaints.

April 30, 2009 - An investor in shares of Sequenom Inc (NASDAQ: SQNM) filed a lawsuit U.S. District Court for the Southern District of California against Sequenom Inc over alleged violations of Federal Securities Laws between June 4, 2008 and April 29, 2009.

According to the complaint the plaintiffs allege that Sequenom Inc and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading statements between June 04, 2008 and April 28, 2009. Specifically, so the lawsuit, defendants failed to disclose that Sequenom Inc employees mishandled test data and results regarding the Down syndrome test and as a result of defendants’ false and misleading statements, Sequenom Inc stock traded at artificially inflated prices during between June 04, 2008 and April 28, 2009, reaching a high of $27.76 per share on September 24, 2008.

Sequenom Inc announced that multiple prior press releases and public statements concerning SEQureDxTM can no longer be relied upon, including press releases Sequenom Inc issued on June 4, 2008, September 23, 2008, December 1, 2008, January 28, 2009, and February 3, 2009. This inflated stock price permitted Sequenom Inc to raise $92 million in a secondary stock offering in July 2008, acquire a diagnostic company for fewer shares of Sequenom Inc stock than would have been necessary absent the inflation, and commence a tender offer for another company in an all-stock transaction, so the plaintiff.

The Complaint alleges that on April 29, 2009, after the market closed, Sequenom Inc issued a press release announcing that the expected launch of its SEQureDxTM Down syndrome test would be delayed due to the discovery by Sequenom Inc officials of employee mishandling of research and development test data and results and as a result, in after-market trading, Sequenom Inc (NASDAQ: SQNM) stock collapsed from $11 per share to as low as $3.23 per share, a one-day decline of more than 75%, on volume of more than 85 million shares.

A law firm announced a further investigation on the test results and data for all products, not just SEQureDxTM.

Sequenom Inc is a diagnostic testing and genetics analysis company and is focused on providing products, services, diagnostic testing, applications and genetic analysis products that translate the results of genomic science into solutions for biomedical research, translational research, molecular medicine applications, and agricultural, livestock and other areas of research. Sequenom Inc is located in San Diego, California and had $41million in total revenue in 2007 and $47.15million in 2008. Shares of Sequenom Inc (NASDAQ:SQNM) traded recently at $3.35 per share, down from a 52weekHigh of $29.14 per share.