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 Southern District of California on behalf of purchasers of the securities of Retrophin, Inc. (“Retrophin” or the “Company”) (NASDAQ:RTRX) between March 27, 2014 and September 30, 2014, inclusive (the “Class Period”).
The complaint against the Company alleges that throughout the Class Period, defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, prospects and performance. Specifically, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Retrophin’s founder and Chief Executive Officer was trading Company stock in violation of the Company’s Incentive Compensation Plan and other securities rules; (ii) these trading irregularities included grants of shares in violation of the Company’s Incentive Compensation Plan and the failure to disclose stock grants to employees; and (iii) as a result of the above, the Company’s statements were materially false and misleading at all relevant times.
On September 16, 2014, after the close of trading, the Company issued a press release and filed a Form 8-K with the SEC announcing that on September 15, 2014, it had reached an agreement with its Chief Financial Officer, Marc Panoff, pursuant to which Mr. Panoff’s employment with the Company will terminate, effective as of February 28, 2015. Also, the Company announced that on September 10, 2014, Jeffrey Paley, MD abruptly stepped down as a member of the Board of Directors. As a result of this news, shares of Retrophin fell $1.03 or over 8%, on unusually heavy trading, to close at $11.46 on September 17, 2014.
Furthermore, on September 30, 2014, after the close of trading, the Company issued a press release announcing that its Board of Directors terminated its Chief Executive Officer, Martin Shkreli, effective immediately, and appointed Stephen Aselage as interim Chief Executive Officer. As a result of this news, shares of Retrophin fell $0.40 or almost 4.5%, on unusually heavy trading, to close at $8.62 on October 1, 2014.
If you are a member of the Class described above, you have until December 19, 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 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.