Portola Pharmaceuticals Inc. Class Action Lawsuit
- Company Name
- Portola Pharmaceuticals Inc.
- Stock Symbol
- Class Period
- November 5, 2019 to January 9, 2020
- Motion Deadline
- March 16, 2020
- Northern District of California
On January 16, 2020, the Portola Pharmaceuticals Inc. class action lawsuit was filed charging Portola and certain of its officers with violations of the Securities Exchange Act of 1934. The Portola class action lawsuit was commenced in the Northern District of California on behalf of purchasers of Portola securities between November 5, 2019 and January 9, 2020 (the “Class Period”) and is captioned Hayden v. Portola Pharmaceuticals Inc., et al., No. 20-cv-00367.
Portola is a biopharmaceutical company that develops and commercializes treatments for thrombosis and other hematologic diseases. Portola’s lead product is Andexxa, used in patients being treated with rivaroxaban or apixaban when anticoagulation needs to be reversed due to life-threatening or uncontrolled bleeding.
The Portola class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about Portola’s business, operations, and prospects. Specifically, defendants failed to disclose that, due to ineffective control over financial reporting regarding reserves for product returns, when Portola began shipping longer-dated product with a 36-month shelf life in November 2019 it had not established adequate reserves for returns of prior shipments of short-dated product, and as a consequence, Portola was reasonably likely to need to “catch up” on accounting for return reserves. As a result of this information being withheld from the market, Portola securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $30 per share.
Then on January 9, 2020, Portola announced disappointing preliminary global net revenues for Andexxa of only $28 million for the fourth quarter of 2019. Portola attributed the result to a “$5 million gross to net adjustment due to the return reserve for short-dated product” and “[f]lat quarter over quarter demand due to a decrease in utilization” of Andexxa by “hospital pharmacies in an effort to manage pharmacy budgets.” On this news, Portola’s share price fell $9.98 per share, or approximately 40%, to close at $14.76 per share on January 10, 2020.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Portola securities during the Class Period to seek appointment as lead plaintiff in the Portola class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Portola class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Portola class action lawsuit. An investor’s ability to share in any potential future recovery of the Portola class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Portola class action lawsuit or have questions concerning your rights regarding the Portola class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Portola class action lawsuit must be filed with the court no later than March 16, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.