Zeldes & Haeggquist, LLP Announces Investigation of Pacific Biosciences of California

SAN DIEGO--(BUSINESS WIRE)--Zeldes & Haeggquist, LLP, a shareholder and consumer rights litigation firm, has commenced an investigation into possible violations of the federal securities laws by certain officers and directors at Pacific Biosciences of California (“Pacific Biosciences” or the “Company”).

“was staffed to support a faster adoption rate for its products”

Pacific Biosciences makes genetic analysis technology focused on helping researchers investigate biochemical processes through gene-mapping. Its common stock has traded on the NASDAQ under the ticker symbol PACB since its $230 million initial public stock offering (“IPO”) on October 26, 2010, offered to the public at $16 per share.

Zeldes & Haeggquist’s investigation concerns whether certain of the Company’s officers and directors caused Pacific Bioscience to materially overstate the acceptance among researchers and research institutes of its SMRT technology system, artificially inflating revenue expectations in the investment community and the Company’s stock price in the IPO and thereafter.

Pacific Biosciences’ shares plummeted around 33% on August 5, 2011, after the Company released second quarter financials on August 4, 2011. Contrary to Pacific Biosciences’ prior statements of strong demand for the Company’s relatively expensive systems, new orders for its SMRT technology systems were actually grossly underperforming expectations. Backlog was also slashed during the quarter. And because that which had previously been expensed as Research & Development costs were now being reported as Costs of Goods Sold, the Company’s forward earnings potential was diminished.

On September 21, 2011, Pacific Biosciences announced that because it “was staffed to support a faster adoption rate for its products,” but now could demonstrate no path to profitability, it was slashing 130 employees, or 28% of its workforce. On this admission the Company’s cash burn-rate was threatening to outstrip remaining assets, the Company’s stock price fell another 18% and is now trading below $5 per share.

If you have purchased shares of Pacific Biosciences and would like additional information regarding this investigation, or if you have information regarding the matters under investigation, please contact attorney Amber L. Eck at 619-342-8000 or by email at [e-mail].

Zeldes & Haeggquist is a full-service law firm which brings major class actions nationwide on behalf of defrauded investors and consumers and handles a variety of complex business litigation matters. Please visit www.zhlaw.com for more information.