Robbins Arroyo LLP: Ligand Pharmaceuticals Incorporated (LGND) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Ligand Pharmaceuticals Incorporated (NASDAQGM: LGND) in the U.S. District Court for the Southern District of California. The complaint is brought on behalf of all purchasers of Ligand securities between November 9, 2015 and November 14, 2016, for alleged violations of the Securities Exchange Act of 1934 by Ligand’s officers and directors. Ligand, a biopharmaceutical company, focuses on developing and acquiring technologies that help pharmaceutical companies discover and develop medicines worldwide.
Ligand Accused of Overstating Its Assets
According to the complaint, Ligand submitted several filings with the U.S. Securities and Exchange Commission (“SEC”) attesting to the accuracy of its financial reporting, the disclosure of any material changes to the company’s internal controls over financial reporting, and the disclosure of all fraud. However, the complaint alleges that Ligand officials failed to disclose that: (1) Ligand overstated the value of certain Deferred Tax Assets by approximately $27.5 million or 13%; (2) Ligand’s outstanding convertible senior unsecured notes due 2019 should have been classified as short-term debt rather than long-term debt as of December 31, 2015; (3) Ligand did not maintain effective controls over the accuracy and presentation of the accounting for income taxes related to complex transactions; and (4) in turn, Ligand lacked effective internal control over financial reporting.
On November 14, 2016, Ligand filed a Form 8-K with the SEC revealing that its consolidated financial statements as of September 30, 2015, December 31, 2015, March 31, 2016, and June 30, 2016 need to be restated and its internal control over financial reporting was not effective as of December 31, 2015. In particular, the company stated that the accounting for income taxes related to complex transactions, including the income tax provision and related tax assets and liabilities and controls over the financial reporting classification of convertible debt and temporary equity, were at issue. On this news, Ligand shares fell $5.60 per share, or approximately 5%, to close at $103.85 per share on November 16, 2016.
Ligand 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.
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