BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the District of Nevada on behalf of purchasers of the securities of PDL BioPharma, Inc. (“PDL BioPharma” or the “Company”) (NASDAQ:PDLI) between November 6, 2013 and September 16, 2014, inclusive (the “Class Period”).
PDL BioPharma manages a portfolio of patents and royalty assets, and is involved in the humanization of monoclonal antibodies and the discovery of a new generation of targeted treatments for cancer and immunologic diseases. The Complaint alleges that the Company issued false and misleading statements and/or failed to disclose that: (1) the Company was overstating its total revenues, royalty revenues, net income, and net cash provided by operating activities; (2) the Company was understating its operating expenses; and (3), the Company failed to properly classify royalty and milestone payments due under an agreement with Depomed, Inc.
On September 16, 2014, the Company disclosed in a regulatory filing that on September 11, 2014, PDL BioPharma was orally notified by its independent registered accounting firm, Ernst & Young LLP, that the firm was resigning effective September 11, 2014, which was confirmed in a letter delivered to the Company on September 15, 2014. Following this news, PDL BioPharma stock dropped more than 12%, or $1.17 per share, to close at $8.48 per share on September 17, 2014. Also on September 17, 2014, the Company issued a response to the resignation of Ernst & Young LLP, stating that the Company “did not have any disagreements with EY on accounting practices, scope or procedures nor did we have any reportable events that would have caused EY to resign their position as our auditors.” In response to the Company’s statement, PDL BioPharma stock continued its decline, falling another 7%, or $0.59 per share, to a closing price of $7.89 per share on September 18, 2014.
If you are a member of the Class described above, you have until November 17, 2014, to move the Court to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.