RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that an investor class action lawsuit has been filed against Aceto Corporation (Nasdaq: ACET) (“Aceto”) on behalf of purchasers of Aceto common stock between August 25, 2017 and April 18, 2018, inclusive (the “Class Period”).
Aceto investors who purchased securities during the Class Period may, no later than June 25, 2018, seek to be appointed as a lead plaintiff representative of the class.
Investors who wish to discuss this action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys James Maro, Jr. or Adrienne Bell at (888) 299-7706 or online at: https://www.ktmc.com/new-cases/aceto-corporation#join
According to the complaint, Aceto is an international company engaged in the development, marketing, sales and distribution of finished dosage form generic pharmaceuticals, nutraceutical products, pharmaceutical active ingredients and intermediates, specialty performance chemicals inclusive of agricultural intermediates and agricultural protection products.
The Class Period commences on August 25, 2017, when Aceto filed a Form 10-K with the SEC announcing the company’s financial and operating results for the fiscal fourth quarter and fiscal year ended June 30, 2017 (“2017 10-K”), which concluded that Aceto’s “internal control over financial reporting as of June 30, 2017, was effective.”
Subsequently, Aceto filed a Form 8-K with the SEC disclosing the non-reliance on its previously issued financial statements and a material weakness in internal control over financial reporting (“November 2017 8-K”).
Then, on April 18, 2018, Aceto issued a press release disclosing non-reliance on the previously issued 2018 fiscal year earnings guidance as well as the recording of non-cash intangible asset impairment charges, including goodwill, in the range of $230-$260 million. Following this news, Aceto’s common stock declined $4.74 from a close price of $7.40 on April 18, 2018, to a close price of $2.66 on April 19, 2018.
The complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Aceto failed to implement and enforce proper internal control to identify the misapplication of cash; (ii) Aceto would incur large non-cash intangible asset impairment charges; (iii) Aceto lacked effective internal control over financial reporting; (iv) Aceto's financial results for the fiscal year 2017 could not be relied upon; (v) Aceto's fiscal 2018 financial guidance was overstated; and (vi) as a result of the foregoing, Aceto's public statements were materially false and misleading at all relevant times.
Aceto investors may, no later than June 25, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.