SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased the securities of Alere Inc. (“Alere” or the “Company”) (NYSE: ALR) between May 9, 2013 and April 20, 2016, inclusive (the “Class Period”).
If you purchased Alere securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than June 20, 2016. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Alere investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Alere Securities Class Litigation
Alere provides diagnostic tests for infectious disease, cardiometabolic disease, and toxicology. On February 1, 2016, Alere disclosed that it had entered into a merger agreement with Abbott Laboratories (“Abbott”) valued at $5.8 billion.
The action alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) Alere improperly recognized and reported revenue in violation of Generally Accepted Accounting Principles; (2) the filing of Alere’s 2015 Form 10-K with the Securities and Exchange Commission would be delayed; (3) as a result of the foregoing, the completion of Alere’s planned merger with Abbott was in doubt; and (4) the Company lacked adequate internal controls over accounting and financial reporting.
On February 26, 2016, Alere disclosed that it was “conducting an analysis of certain aspects of revenue recognition in Africa and China” and potential implications on its internal controls over financial reporting for the year ending December 31, 2015 and, as a result, Alere would not be able to file its 2015 Form 10-K in a timely manner. Following this news, Alere’s stock price fell $0.48 per share to close at $53.30 on February 29, 2016.
On March 15, 2016, Alere filed a Form 8-K in which it disclosed that it will be unable to file its 2015 Form 10-K within the extension period because it was continuing to analyze its revenue recognition, particularly revenue cutoff, in Africa and China for the years ended December 31, 2013, 2014 and 2015 (and each of the quarters in those annual periods). Alere further disclosed in the Form 8-K that it was analyzing whether a material weakness existed as of December 31, 2015, and that on March 11, 2016, it had received a grand jury subpoena from the United States Department of Justice seeking documents concerning, among other things, Alere’s sales, sales practices and dealings with third-parties in Africa, Asia and Latin America and the U.S. Foreign Corrupt Practices Act. On this news, Alere’s stock price fell $4.14 per share, to close at $49.32 per share on March 15, 2016, on extraordinarily heavy volume.
On April 20, 2016, during Abbott’s earnings conference call, Abbott’s Chief Executive Officer would not affirm his company’s commitment to the planned merger with Alere because “they’ve had delays filing their 10-K. We don’t know when they’ll file their proxy. We don’t know when they’re going to have a shareholder vote. So right now I’d say it’s not appropriate for me to comment on Alere.” On this news, Alere’s stock price fell $6.11 per share, or 12.35% from a closing price on April 19, 2016, to close at $43.36 per share on April 20, 2016, on extremely heavy volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for thirteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have named Lieff Cabraser as a “Law Firm of the Year” for each year the publications have given this award to law firms.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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