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Akers Biosciences, Inc.

28 days left to seek lead plaintiff status

Case Summary

Company Name
Akers Biosciences, Inc.
Stock Symbol
AKER
Class Period
May 15, 2017 to June 5, 2018
Motion Deadline
August 12, 2018
Court
District of New Jersey

The complaint charges Akers and certain of its officers with violations of the Securities Exchange Act of 1934.  Akers, together with its subsidiaries, develops, manufactures and supplies rapid screening and testing products designed to deliver healthcare information to healthcare providers and consumers in the United States, the People’s Republic of China and internationally.

The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Akers’ business and financial results.  Specifically, the complaint alleges that defendants failed to disclose that Akers was improperly recognizing revenue for the fiscal year ended December 31, 2017 and had downplayed weaknesses in its internal controls over financial reporting and failed to disclose the true extent of those weaknesses.  As a result of defendants concealing this information from the market, Akers securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $1.50 per share.

On May 21, 2018, Akers disclosed that it would be unable to file its quarterly report on Form 10-Q with the SEC in a timely manner due to its continuing review of the “characterization of certain revenue recognition items for the quarter ended March 31, 2018.”  According to the Company, the “review is continuing and now includes certain transactions in previous quarters.”  On this news, the price of Akers shares fell over 8% to close at $0.599 per share.  On May 29, 2018, Akers announced that the founder of the Company, Raymond F. Akers Jr., had resigned as a director of Akers effective immediately.  This caused the price of Akers shares to fall 33%, to close at $0.39 per share.

On June 1, 2018, the Company filed a Form 8-K with the SEC reporting that Raymond Akers had “not been fully cooperative” with the Company’s review of certain revenue recognition items for prior quarters.  The Form 8-K attached a letter from Raymond Akers stating the he had “resigned from the Board of Directors due to significant differences regarding the policies and practices of the Board of Directors, accounting and business practices of Management, and new Counsel.”  Then on June 5, 2018, the Company filed an amendment to the June 1, 2018 Form 8-K attaching a letter on behalf of Raymond Akers stating that “on behalf of Ray Akers, we believe the language of the 8K regarding Ray is false, totally misleading, and such that [it] will cause Ray to have to take corrective action.  Ray is a whistleblower; the only reason there is an investigation regarding revenue recognition is because Ray refused to approve the 10K for 2017 and demanded an investigation.  To say he is being ‘uncooperative’ is utterly disingenuous and will not be tolerated.”  On this news, the price of Akers shares fell over 5% to close at $0.46 per share on June 6, 2018.

Class Period: May 15, 2017 - June 5, 2018
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