Robbins Arroyo LLP: Retrophin, Inc. (RTRX) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of Retrophin, Inc. (NASDAQGM: RTRX) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between November 13, 2013 and September 30, 2014. Retrophin is a biopharmaceutical company that develops, acquires, and commercializes therapies for the treatment of serious, catastrophic, and rare diseases.
Retrophin Is Accused of Misleading Investors
According to the complaint, shares of Retrophin fell $1.03 per share, or 8%, to close at $11.46 per share on September 17, 2014, following the September 15, 2014 announcement that the company would terminate Chief Financial Officer, Marc Panoff, effective February 28, 2015. In that same press release the company announced that Jeffrey Paley, MD, resigned as a member of the Board of Directors on September 10, 2014. Shares of Retrophin dropped an additional 4.5%, or $0.40, to close at $8.62, on October 1, 2014, after the company announced the termination of Chief Executive Officer, Martin Shkreli, effective September 30, 2014. An article published in Bloomberg Businessweek on October 2, 2014, claimed that Shkreli was terminated due to violations of securities rules, including engaging in stock-trading irregularities.
The complai nt also alleges that Retrophin made false and/or misleading statements and/or failed to disclose that: (i) the company’s founder and Chief Executive Officer was committing stock-trading irregularities; (ii) those irregularities included grants of Retrophin stock to certain recipients in the absence of a shareholder-approved distribution plan, failures to disclose stock grants, and grants of stock in violation of the company’s Incentive Compensation Plan; (iii) as a result of those grants, defendants committed violations of the Company’s Incentive Compensation Plan and other securities rules; and (iv) the company’s financial statements and other SEC filings were materially false and/or misleading.
Retrophin 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.