WILMINGTON, Del.--(BUSINESS WIRE)--Rigrodsky & Long, P.A. has commenced a class action asserting violations of the Federal securities laws by Pacific Biosciences of California, Inc. (“PACB” or the “Company”) (NASDAQ GS: PACB) on behalf of PACB shareholders. On April 6, 2012, the Court appointed Rigrodsky & Long, P.A. lead counsel in connection with the litigation.
If you are a PACB shareholder who purchased your stock pursuant or traceable to the Company’s Initial Public Offering on October 27, 2010 (the “IPO”) or from J.P. Morgan Securities LLC or from Deutsche Bank Securities, Inc., and would like to learn more about litigation, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Peter Allocco at Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, New York 11530 toll free at (888) 969-4242, by e-mail to firstname.lastname@example.org, or at: http://www.rigrodskylong.com/news/pacific-biosciences-of-california-inc-pacb-ipo.
PACB is a development stage company that develops, manufactures, and markets an integrated platform for genetic analysis. The Company engages in commercializing a platform, single molecule, real-time technology (SMRT) for the detection of biological events.
Among other things, the litigation alleges that the Company failed to disclose in connection with its IPO that, contrary to the PACB’s claim that its RS DNA sequencing system had a 99.99% accuracy rate, the RS’s raw-read accuracy rate was only 80%-84% such that would-be customers would have to sacrifice long read length to obtain increased raw-read accuracy, that countless insidious bugs in the RS system caused it to be highly unreliable and crash often, and that significant negative feedback had been received from limited production users of the system.
On August 5, 2011, J.P. Morgan issued a report cutting PACB’s rating from Overweight to Neutral, stating that due to a slower ramp-up in orders now being expected it was “lowering [its] 2012 projection from systems recognized from 170 to 90” and is now “not forecast[ing] operating profitability until after 2015.” In reaction to this news, PACB stock plunged 34% to close at $6.50 per share on August 5, 2011.
The very next month, on September 21, 2011, PACB was forced to disclose that its cash burn was threatening its operations so severely, that as a result it was laying off 130 employees and it would incur $5 million in separation expenses related to the lay off of these employees. In reaction to this news, PACB’s again plummeted another 25% to close at $4.25 per share on September 21, 2011.
Rigrodsky & Long, P.A., with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
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