- Company Name
- Akorn, Inc.
- Stock Symbol
- Class Period
- March 1, 2017 to February 26, 2018
- Motion Deadline
- May 7, 2018
- Northern District of Illinois
The complaint charges Akorn and certain of its officers with violations of the Securities Exchange Act of 1934. Akorn develops, manufactures and markets specialized generic and branded pharmaceuticals, over-the-counter drug products and animal health products in the United States and internationally On April 24, 2017, it was announced that Fresenius SE & Co. KGaA (“Fresenius”) had agreed to acquire Akorn in a transaction, valued at $5 billion, that was expected to close by early 2018.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Akorn and its business and prospects. Specifically, the complaint alleges that Akorn’s failure to comply with FDA data integrity requirements would jeopardize Fresenius’s acquisition of Akorn, and that Akorn lacked effective internal controls over financial reporting and, as a consequence, Akorn’s financial statements were false and misleading at all relevant times. As a result of these false statements and/or omissions, Akorn securities traded at artificially inflated prices, with its stock price reaching a high of $33.70 per shares during the Class Period.
Then on February 26, 2018, Fresenius announced it was “conducting an independent investigation, using external experts, into alleged breaches of FDA data integrity requirements relating to product development at Akorn.” Fresenius also stated that “the consummation of the transaction [to acquire Akorn] may be affected if the closing conditions under the merger agreement are not met.” As a result of this disclosure, the price of Akorn shares fell $11.63 per share, or over 38%, to close at $18.65 per share on February 27, 2018.