Syneos Health, Inc.
- Company Name
- Syneos Health, Inc.
- Stock Symbol
- Class Period
- May 10, 2017 to February 27, 2019
- Motion Deadline
- April 30, 2019
- District of New Jersey
The complaint charges Syneos and certain of its current and former officers with violations of the Securities Exchange Act of 1934. Syneos operates as an integrated biopharmaceutical solutions company. On August 1, 2017, Syneos, then known as INC Research Holdings, Inc., and inVentive Health, Inc. announced the completion of their $4.6 billion merger. In January 2018, the combined company was renamed Syneos Health, Inc.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Syneos’s business and financial condition, including that Syneos’s internal control over financial reporting was inadequate and that concerns about the Company’s internal control over financial reporting would result in heightened regulatory scrutiny and an SEC investigation into its revenue accounting policies, internal controls and related matters. As a result of this information being concealed during the Class Period, Syneos securities traded at artificially inflated prices, with its stock price reaching a high of more than $60 per share.
Then on February 27, 2019, after the market closed, Syneos announced it would delay the release of its annual report on Form 10-K for the year ended December 31, 2018 after the SEC “notified the Company that it ha[d] commenced an investigation into the Company’s revenue accounting policies, internal controls and related matters, and requested that [Syneos] retain certain documents for the period beginning with January 1, 2017.” Syneos also stated that the “Audit Committee of [its] Board of Directors is conducting an independent review of the Company’s revenue accounting policies, internal controls and related matters with the assistance of outside counsel and accounting advisors.” As a result of these disclosures, the price of Syneos shares fell $10.24 per share, or nearly 20%, to close at $41.77 per share on February 28, 2019.