NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Portola Pharmaceuticals, Inc. ("Portola" or the "Company")(NASDAQ:PTLA) of the March 16, 2020 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 Portola stock or options between November 5, 2019 and January 9, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/PTLA. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Portola securities between November 5, 2019 and January 9, 2020 (the "Class Period"). The case, Hayden v. Portola Pharmaceuticals, Inc. et al., No. 20-cv-00367 was filed on January 16, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Portola’s internal control over financial reporting regarding reserve for product returns was not effective; (2) Portola was shipping longer-dated product with 36-month shelf life; (3) Portola had not established adequate reserve for returns of prior shipments of short-dated product; (4) as a result, Portola was reasonably likely to need to "catch up" on accounting for return reserves; and (5) as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
On January 9, 2020, Portola announced preliminary net revenues of only $28 million for the fourth quarter of 2019. Portola attributed the result to a $5 million reserve adjustment for shortdated product, and flat quarter-over-quarter demand.
On this news, Portola's share price fell from $24.74 per share on January 9, 2020 to a closing price of $14.76 on January 10, 2020: a $9.98 or a 40.31% 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 Portola's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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