NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Aceto Corporation (“Aceto” or the “Company”) (NASDAQ:ACET) of the June 25, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Aceto stock or options between August 25, 2017 and April 18, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/ACET. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Aceto securities between August 25, 2017 and April 18, 2018 (the “Class Period”). The case, Mulligan v. Aceto Corporation et al., No. 2:18-cv-02425 was filed on April 24, 2018 and has been assigned to Judge Joseph F. Bianco.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) the Company would incur large non-cash intangible asset impairment charges; (ii) the Company lacked effective internal control over financial reporting; (iii) the Company’s fiscal 2018 financial guidance was overstated; and, (iv) as a result of the foregoing, Aceto’s public statements were materially false and misleading at all relevant time.
Specifically, on April 18, 2018, after market close, Aceto issued a press release, also attached as exhibit 99.1 to the Form 8-K filed with the Securities Exchange Commission (‘SEC”), announcing, “in light of the persistent adverse conditions in the generics market, it is negotiating with its bank lenders a waiver of its credit agreement with respect to its total net leverage and debt service coverage financial covenants in the fiscal third quarter, and that the financial guidance issued on February 1, 2018, should no longer be relied upon. In addition, the Company anticipates recording non-cash intangible asset impairment charges, including goodwill, in the range of $230 million to $260 million on certain currently marketed and pipeline generic products as a result of continued intense competitive and pricing pressures.”
After the announcement, Aceto’s share price fell from $7.40 per share on April 18, 2018 to a closing price of $2.66 on April 19, 2018—a $4.74 or a 64.0541% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Aceto’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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