Omega Protein Corporation
Robbins Arroyo LLP: Omega Protein Corporation (OME) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Omega Protein Corporation (NYSE: OME) (“Omega”) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Omega securities between June 4, 2013 and March 1, 2017, for alleged violations of the Securities Exchange Act of 1934 by Omega’s officers and directors. Omega develops, produces, and delivers products to enhance the nutritional integrity of foods, dietary supplements, and animal feeds worldwide.
Omega Accused of Downplaying Negative Effect of SEC Inquiry on Its Business
According to the complaint, on March 10, 2014, Omega issued a press release opining on the company’s optimistic outlook for its future, stating, “We are pleased with the progress made on our strategic objectives in 2013…” and “We are excited to build on this progress in 2014 as we introduce additional capacity and capabilities to capitalize on our market opportunities.” Omega also noted in subsequent filings with the U.S. Securities and Exchange Commission (“SEC”) that the company experienced significant increases in revenue, improvements in annual profits, and progress on strategic investments. The complaint alleges that Omega officials failed to disclose that Omega’s subsidiary was potentially not in compliance with its probation terms, the company was not properly protecting whistleblower employees, and as a result, Omega was vulnerable to an SEC investigation and potential civil and criminal liability.
On March 1, 2017, Omega revealed that in December 2016, it received a subpoena from the SEC seeking information in connection with an investigation of an Omega subsidiary’s compliance with its probation terms and the company’s protection of whistleblower employees. Omega further disclosed that the investigation could result in a “material adverse effect on the Company’s business, reputation, results of operation, and financial condition.” On this news, Omega’s stock fell $6.25 per share, or approximately 24%, to close at $20.00 per share on March 2, 2017.
Omega Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.