BioDelivery Sciences International, Inc. (NASDAQ:BDSI) Investor Investigation Over Potential Breaches Of Fiduciary Duties Announced

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Company Name(s): 
BioDelivery Sciences
Affected Securities: 

Mar 4, 2013 (Shareholders Foundation) -- An investigation on behalf of current long-term investors of BioDelivery Sciences International, Inc. (NASDAQ:BDSI) shares over potential breaches of fiduciary duties by certain BioDelivery Sciences directors and officers in connection certain financial statements was announced.

The investigation by a law firm concerns whether certain BioDelivery Sciences officers and directors breached their fiduciary duties and caused damage to the company. and its shareholders by potentially failing to implement adequate internal controls and possibly misstating the company's financial results.

BioDelivery Sciences International reported that its Total Revenue declined from $3.40 million in 2010 to $3.26 million in 2011 and its Net Loss increased from $13.03 million in 2010 to $23.33 million in 2011.

For the first three quarters in 2012 BioDelivery Sciences International reported a quarterly Total Revenue of $30.06 million, $15.05 million and $0.05 million, thus a combined nine months Total Revenue of $45.16 million. For the first quarter in 2012 BioDelivery Sciences International reported $20.30 million in quarterly Net Income and for the second quarter 2012 $2.53 million quarterly Net Income. For the third quarter 2012 BioDelivery Sciences International, announced quarterly Net Loss of $19.30 million. Thus a combined nine months Net Income of $3.53 million.

Shares of BioDelivery Sciences International, Inc. (NASDAQ:BDSI) grew from $0.805 per share in late 2011 to as high as $6.74 per share in October 2012.

On Feb. 28, 2013, BioDelivery Sciences International, Inc. disclosed in a filing with the SEC on February 25, 2013, the Audit Committee of the Board of Directors and the executive management of BioDelivery Sciences International determined that approximately $14.4 million of the $30 million non-refundable upfront license fee received by BioDelivery Sciences International under the Endo Agreement in January 2012 should not have been recognized as revenue at that time, but should instead be deferred. BioDelivery Sciences International said that as such, a determination has been made that the Company’s unaudited financial statements for each of the first three quarters of BioDelivery Sciences’ 2012 fiscal year require restatement solely with respect to such recognition of revenue under the Endo Agreement and therefore should not be relied upon.

Shares of BioDelivery Sciences International, Inc. (NASDAQ:BDSI) closed on March 4, 2013, at $3.80 per share.