LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a national investors rights law firm, announces that a class action lawsuit has been filed on behalf of investors that purchased Portola Pharmaceuticals, Inc. (“Portola” or the “Company”) (NASDAQ: PTLA) securities between January 8, 2019 and February 26, 2020, inclusive (the “Class Period”). Portola investors have until March 16, 2020 to file a lead plaintiff motion.
If you suffered a loss on your Portola investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information here or contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, via email firstname.lastname@example.org or visit our website at www.glancylaw.com to learn more about your rights.
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 short-dated product, and flat quarter-over-quarter demand.
On this news, the Company’s share price fell $9.98, or approximately 40%, to close at $14.76 per share on January 10, 2020, on unusually heavy trading volume.
On February 26, 2020, Portola announced its financial results for the fourth quarter and full year 2019, and disclosed details regarding problems with customers’ adoption of Andexxa. In addition, Portola disclosed a $27.5 million charge arising from its decision to discontinue operations related to Bevyxxa. On a conference call held that day, the Company’s CEO revealed that the Company ceased Bevyxxa commercialization efforts to undertake an internal restructuring in order to focus its efforts on handling the problems related to Andexxa.
On this news, the Company’s share price fell $2.35, or more than 18%, to close at $10.17 per share on February 27, 2020, thereby injuring investors.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements. Specifically, because of utilization reviews, hospitals and healthcare organizations were curtailing usage of Andexxa in order to make more efficient use of their budgets, and certain distributors were cutting back on orders of Andexxa as they were awash with inventory of Andexxa. Because Portola recognized revenue when the product was shipped to the hospital, including the initial stocking before utilization, investors could not properly estimate rates of utilization at current hospitals. Moreover, Portola had not established adequate reserves for returned inventory based on estimates of demand compared to shelf life. As a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased Portola securities during the Class Period, you may move the Court no later March 16, 2020 to ask the Court to appoint you as lead plaintiff. 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 you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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