Robbins Arroyo LLP: Alere Inc. (ALR) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Alere Inc. (NYSE: ALR) in the U.S. District Court for the Southern District of Florida. The complaint is brought on behalf of all purchasers of Alere securities between February 29, 2012 and November 4, 2016, for alleged violations of the Securities Exchange Act of 1934 by Alere’s officers and directors. Alere provides professional diagnostic products and services for infectious and cardiometabolic disease, and toxicology in the United States, Europe, and internationally. Alere has a wholly-owned subsidiary known as Arriva Medical LLC (“Arriva”) through which it distributes diabetic testing supplies.
Alere Accused of Misrepresenting Its Financial Condition
According to the complaint, Alere submitted several filings with the U.S. Securities and Exchange Commission which discussed Medicare reimbursements with respect to Arriva’s products, stating that they were usually covered by Medicare, Medicaid, and other third-party payers. Alere specifically stated that, “Our Arriva business has been selected through the bidding process and offered a contract to have its products reimbursed by Medicare.” The filings also attested to the accuracy of the financial statements, the effectiveness of internal controls, and that all fraud was disclosed. The complaint alleges, however, that these statements were misleading because Alere officials failed to disclose that Arriva was submitting claims to Medicare for deceased patients, which in turn subjected Arriva to revocation of its Medicare enrollment.
On November 4, 2016, Alere disclosed that Arriva had received notice from the Centers for Medicare and Medicaid Services that its Medicare enrollment would be revoked effective November 4, 2016, citing Arriva’s claims for deceased patients. The company further stated that unless and until the enrollment status is reactivated, Arriva would be ineligible for reimbursement for any products or services furnished on or after November 4, 2016. Alere noted that its results of operation for the nine months ended September 30, 2016 included approximately $88 million in revenue attributable to Arriva. On this news, Alere stock fell $6.13 per share, or over 14.5%, to close at $36.10 per share on November 4, 2016.
Alere Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.