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 District of Massachusetts. The plaintiff brings the complaint on behalf of all purchasers of Alere securities between May 9, 2013 and April 20, 2016, for alleged violations of the Securities Exchange Act of 1934 by Alere’s officers and directors. Alere provides point-of-care diagnostics and services for infectious disease, cardiometabolic disease, and toxicology in the United States and internationally.
Alere Accused of Misrepresenting its Financial Condition
According to the complaint, on February 1, 2016, Alere announced it had entered into a merger agreement with Abbott Laboratories (“Abbott”), which caused Alere’s stock price to rise by 45% and close at $54.11 per share that day. Then, on February 26, 2016, Alere disclosed that it was unable to file its 2015 Form 10-K by the deadline because the company was analyzing revenue recognition in Africa and China and any implications on the company’s evaluation of internal controls over financial reporting for the year ended December 31, 2015. Alere further disclosed that it received a subpoena from the U.S. Securities and Exchange Commission (“SEC”) on January 14, 2016, in connection with the previously disclosed formal SEC investigation, which requested additional information related to sales and revenue recognition of products and services to end-users in Africa.
On March 15, 2016, Alere filed a Form 8-K with the SEC, disclosing that it would be unable to file its 2015 Form 10-K within the extension period because it was expanding its analysis to include years 2013 and 2014 and was determining whether a material weakness existed at December 31, 2015. It further stated that on March 11, 2016, it received a grand jury subpoena from the U.S. Department of Justice requiring the production of documents relating to sales practices and dealings with third-parties in Africa, Asia, and Latin America and other matters related to the U.S. Foreign Corrupt Practices Act. Then, on April 20, 2016, during Abbott’s quarterly earnings conference call, Abbot’s Chief Executive Officer would not affirm Abbott’s commitment to merge with Alere, noting Alere’s delays in filing its 10-K and uncertainty surrounding its proxy and shareholder vote. Since these disclosures were made public, Alere stock has fallen by $10.75 per share, or approximately 22%, to close at $43.36 per share on April 20, 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.