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 March 27, 2014 and September 30, 2014. Retrophin is a biopharmaceutical company that specializes in the development, acquisition, and commercialization of therapies for the treatment of serious, catastrophic, or rare diseases.
Retrophin Is Accused of Engaging in Stock-Trading Irregularities
According to the complaint, shares of Retrophin first fell $1.03, or over 8%, to close at $11.46 on September 17, 2014, following a September 16, 2014 press release in which Retrophin disclosed that it reached an agreement with its Chief Financial Officer, Marc Panoff, pursuant to which Mr. Panoff’s employment would be terminated effective February 28, 2015, and that Jeffrey Paley, MD had abruptly stepped down as a member of the board of directors. Shortly thereafter, on September 30, 2014, Retrophin issued a press release announcing that the company’s board of directors terminated its Chief Executive Officer, Martin Shkreli, effective immediately. On this news, shares of Retrophin fell $0.40, or nearly 4.5%, to close at $8.62 on October 1, 2014. The following day, Bloomberg Businessweek published an article stating that Mr. Shkreli was fired because he engaged in stock-trading irregularities and other securities violations.
Specifically, the complaint alleges that Mr. Shkreli’s stock-trading 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. The complaint further alleges that the company violated other securities rules, including NASDAQ Listing Rules.
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.