BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of Enzymotec Ltd. (“Enzymotec” or the “Company”) (NASDAQ:ENZY) concerning possible violations of federal securities laws. The investigation focuses on certain statements issued by Enzymotec concerning the Company’s business, operations and financial prospects. Enzymotec develops, manufactures and markets bio-active lipid ingredients used in the production of various nutritional products. The Company’s primary source of revenue is through its baby formula business, including the popular InFat line of products.
The investigation is related to allegations that the Registration Statement and Prospectus issued in connection with the Company’s initial public offering on or about September 27, 2013, contained materially false and misleading statements and omitted material information, including that:
- Enzymotec’s Chinese business was subject to material and readily identifiable compliance regulations from the Chinese government.
- The Company’s baby formula business in China was jeopardized and subject to increased volatility and decreased revenues.
- The Company’s joint venture with AarhusKarlshamn AB, which marketed the popular InFat product, was crumbling and subjected the Company to liability and decreased revenues.
On May 14, 2014, the Company disclosed for the first time that “Chinese regulations require infant formula manufacturers to make certain changes to their production chain,” and as a result the Company’s revenues were lower. On August 5, 2014, the Company further disclosed the increased impact of the Chinese regulations on its sales of infant formula, and announced financial results that were significantly lower than the prior year in almost all respects. As a result of this news, Enzymotec shares declined $5.85 per share, or nearly 40%, to close on August 5, 2014, at $9.11 per share, on volume of more than 1 million shares.
If you purchased Enzymotec shares between September 27, 2013 and August 4, 2014, if you have information or would like to learn more about these claims, 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 firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.