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 Central District of California. The complaint is brought on behalf of all purchasers of Omega securities between August 3, 2016 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, in a series of filings with the U.S. Securities and Exchange Commission (“SEC”), Omega officials attested to the accuracy of the 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 Omega officials failed to disclose that the SEC is requesting information in connection with its subsidiary, Omega Protein Inc. (“Omega Inc.”) and that this could have a negative effect on Omega. On December 16, 2016, Omega filed a Form 8-K with the SEC announcing that Omega Inc. agreed to plead guilty to two felony counts under the Clean Water Act pursuant to a plea agreement with the United States Attorney’s Office for the Western District of Louisiana.
On March 1, 2017, in its Form 10-K for the fiscal year ended December 31, 2016, Omega revealed that in December 2016, it “received a subpoena from the SEC requesting information in connection with an investigation relating to a Company subsidiary’s compliance with its probation terms and the Company’s protection of whistleblower employees.” Omega further disclosed that this 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 23.81%, from its previous closing price 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 Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
Send This Post