The Shareholders Foundation announces that an investor, who purchased shares of Enzymotec Ltd (NASDAQ:ENZY), filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Enzymotec Ltd in connection with certain allegedly false and misleading statements made between pany’s initial public offering on or about September 27, 2013 and August 4, 2014.
Investors who purchased shares of Enzymotec Ltd (NASDAQ:ENZY) have certain options and for certain investors are short and strict deadlines running. Deadline: November 4, 2014. NASDAQ:ENZY investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Enzymotec Ltd (NASDAQ:ENZY) securities pursuant and/or traceable to Enzymotec’s Registration Statement and Prospectus issued in connection with the Company’s initial public offering (“IPO”) on or about September 27, 2013, and/or on the open market between September 27, 2013 and August 4, 2014, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that the Registration Statement and Prospectus allegedly contained materially false and misleading statements and omitted material information, and that defendants misrepresented and/or failed to disclose between September 27, 2013 and August 4, 2014:
– that Enzymotec Ltd’s Chinese business was subject to material and readily identifiable compliance regulations from the Chinese government,
– that Enzymotec Ltd’s baby formula business in China was jeopardized and subject to increased volatility and decreased revenues,
– that Enzymotec Ltd’s joint venture with AarhusKarlshamn AB, which marketed the popular InFat product, was crumbling and subjected the Company to liability and decreased revenues,
– that Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Shares of Enzymotec Ltd (NASDAQ:ENZY) grew from $16.55 per share in September 2013 to as high as $33.44 per share in December 2013. Enzymotec Ltd reported that its annual Total Revenue rose from $23.02 million in 2011 to $64.97 million in 2013 and that its Net Loss of $0.86 million in 2011 turned into a Net Income of $11.39 million in 2013.
Then on May 14, 2014, Enzymotec Ltd reported its first quarter 2014 unaudited financial results. Among other things, Enzymotec Ltd said that recent changes in Chinese regulations require infant formula manufacturers to make certain changes to their production chain. Shares of Enzymotec Ltd (NASDAQ:ENZY) declined from $20.23 per share on May 13, 2014, to $12.90 per share on May 16, 2014.
Then on August 5, 2014, Enzymotec Ltd reported its second quarter 2014 financial results. Enzymotec’s President and Chief Executive Officer said that “in the second quarter our business experienced operational challenges based on external market dynamics which hindered our financial performance,” and that “While we expected these headwinds in the quarter, particularly related to recent regulatory changes in the Chinese infant formula market and weakness in the U.S. and Australian Omega-3 industry”. On August 29, 2014, Enzymotec Ltd announced new hires to its senior management team. Shares of Enzymotec Ltd (NASDAQ:ENZY) declined from $14.98 per share on August 4, 2014, to $9.11 per share on August 5, 2014 and continued to decline to as low as $7.41 per share.
Those who purchased shares of Enzymotec Ltd (NASDAQ:ENZY) have certain options and should contact the Shareholders Foundation.
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