WILMINGTON, Del.--(BUSINESS WIRE)--Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Salix Pharmaceuticals, Ltd. (NASDAQ GS: SLXP)?
- Did you purchase your shares before November 8, 2013, or between November 8, 2013 and November 6, 2014, inclusive?
- Did you lose money in your investment in Salix Pharmaceuticals, Ltd.?
- Do you want to discuss your rights?
Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of Salix Pharmaceuticals, Ltd. (“Salix” or the “Company”) (NASDAQ GS: SLXP) between November 8, 2013 and November 6, 2014, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Salix during the Class Period, or purchased shares prior to the Class Period and still hold Salix, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to email@example.com; or at: http://www.rigrodskylong.com/investigations/salix-pharmaceuticals-ltd-slxp.
Salix is a specialty pharmaceutical company dedicated to acquiring, developing and commercializing prescription drugs and medical devices used in the treatment of a variety of gastrointestinal disorders, which are those affecting the digestive tract. Its top-selling drug is XIFAXAN® (rifaximin) (“Xifaxan”), an antibiotic that is currently approved to treat a condition referred to as “traveler’s diarrhea” and a liver disorder that impairs brain function. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) Salix’s business prospects and demand for Xifaxan and its other drugs were materially deteriorating; (2) Salix’s wholesale inventory levels of Xifaxan and its other drugs were rising more quickly than wholesalers could sell the drug to pharmacies, and more rapidly than revealed to investors; (3) Salix’s reserves for outstanding inventory were understated and, because of this understatement, its reported quarterly and annual net revenue and EPS figures were overstated; and (4) Salix’s disclosure controls and procedures and its internal controls over financial reporting and accounting were subject to material weaknesses. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on November 6, 2014, the Company shocked the markets with a series of disclosures reflecting poor prospects and corporate misconduct. Among other things, Salix announced that its Chief Financial Officer abruptly resigned after fourteen years with the Company. Additionally, the Company revealed a massive increase in inventory levels for many of its drugs, including Xifaxan. It was also disclosed that the Company was reducing guidance for full-year 2014 of $1.6 billion in net product revenues and $475 million in earnings – projections that had been offered and affirmed repeatedly during the Class Period.
On this news, shares in Salix plummeted almost 34%, closing at $91.47 per share on November 7, 2014, on trading volume of over 25 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later than January 6, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, 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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