BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming September 12, 2016 deadline to file a lead plaintiff motion in the class action filed on behalf of a class (the “Class”) of investors who purchased Stericycle, Inc. ("Stericycle" or the "Company") (NASDAQ: SRCL) securities between February 7, 2013 and July 28, 2016, inclusive (the “Class Period”). Stericycle investors have until September 12, 2016 to file a lead plaintiff motion.
On September 9, 2015, Stericycle announced a public offering of 7,000,000 depositary shares at $100.00 per share. Shortly thereafter, on October 22, 2015, Stericycle issued its financial results for the 2015 third quarter and year to date, these results fell below expectations, with the Company reporting a revenue for the third quarter of $718.6 million. In a conference call, CEO Charlie Alutto noted that the “slowdown which we saw accelerate in the third quarter is going to actually get worse in fourth quarter and then level off in 2016.” Upon this news, shares of Stericycle dropped more than 12 percent thereby damaging investors.
The complaint filed in this action alleges that the defendants systematically and fraudulently violating the terms of its customer contracts by regularly increasing the rates it charged without the necessary justification. Once customers discovered they were being defrauded, the Company attempted to coerce them to remain customers of Stericycle by threatening customers with enormous liquidated termination fees and offering rate reductions that still resulted in customers paying higher rates than those contained in their original contracts. Overall, through this scheme, Stericycle’s financial results and growth were artificially inflated and the Defendants misled the market into believing the Company was performing much better than it actually was. As a result, the Company’s stock price was artificially inflated and investors that bought Stericycle stock at such artificially inflated prices have been harmed.
If you purchased Stericycle shares during the Class Period, you may move the Court no later than September 12, 2016 to request appointment as lead plaintiff. 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, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, 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 howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.
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