The Shareholders Foundation announces that an investor, who purchased shares of Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Salix Pharmaceuticals, Ltd. in connection with certain allegedly false and misleading statements made between November 8, 2013 and November 6, 2014.
Investors who purchased shares of Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) have certain options and for certain investors are short and strict deadlines running. Deadline: January 6, 2015. NASDAQ:SLXP investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) common shares between November 8, 2013 and November 6, 2014, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between November 8, 2013 and November 6, 2014 the defendants made allegedly false and misleading statements and allegedly concealed material information regarding deteriorating demand for Salix Pharmaceuticals, Ltd top-selling drug Xifaxan and other Salix Pharmaceuticals, Ltd drugs and wholesaler inventory levels of Xifaxan and other Salix Pharmaceuticals, Ltd drugs, which were significantly greater and rising more rapidly than revealed to investors.
Furthermore, the plaintiff alleges that Salix Pharmaceuticals, Ltd’s reserves for outstanding inventory were understated and, because of this understatement, its reported quarterly and annual net revenue and earnings per share figures were overstated, and that Salix Pharmaceuticals, Ltd’s disclosure controls and procedures and its internal controls over financial reporting and accounting were subject to material weaknesses.
On November 6, 2014, Salix Pharmaceuticals, Ltd reported its third quarter 2014 results. While Salix Pharmaceuticals, Ltd announced that its third quarter Revenue rose from $238.2 million in 2013 to $354.7 million in 2014, its third quarter Net Income of $47.3 million in 2013 turned into a third quarter Net Loss of $88.60 million in 2014. On the same day, Salix Pharmaceuticals, Ltd announced that Adam C. Derbyshire, resigned as CFO at the Company and the appointment of Timothy J. Creech as Acting Chief Financial Officer of the Company, effective immediately. Shares of Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) declined from as high as $141.79 per share on November 6, 2014, to as low as $86 per share on November 7, 2014.
The plaintiff claims that the true state of the demand for Xifaxan and other Salix Pharmaceuticals, Ltd drugs and the consequences for the Company’s business were revealed on November 6 and 7, 2014, when Salix Pharmaceuticals, Ltd disclosed that its longstanding Chief Financial Officer, Adam C. Derbyshire, had abruptly resigned, that its wholesaler inventory levels were three times greater than previously reported and the Audit Committee of Salix’s Board of Directors had retained outside counsel as part of an inquiry into the Company’s reporting of wholesale inventory of Xifaxan and other drugs, and that its previously issued guidance for full-year 2014 revenues would not be met and needed to be reduced by 12.5 percent.
Those who purchased shares of Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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