Press release from Business Wire
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Neptune Technologies & Bioressources Inc.
Wednesday, December 19, 2012
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Neptune Technologies & Bioressources Inc.17:30 EST Wednesday, December 19, 2012 NEW YORK (Business Wire) -- Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/neptune/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the common stock of Neptune Technologies & Bioressources Inc. (“Neptune” or the “Company”) (Nasdaq:NEPT) between December 12, 2011 and November 8, 2012 (the “Class Period”). The proposed class action includes purchasers in Neptune's September 25, 2012 registered public stock offering priced at $4.10 per share. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/neptune/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges Neptune and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Neptune is a Quebec, Canada-based biotechnology company that develops and commercializes krill oil products extracted from Antarctic krill for the nutraceutical, pharmaceutical, cosmetic, and pet food markets. The complaint alleges that, throughout the Class Period, defendants lauded the future benefits of the massive expansion underway at the Company's Sherbrooke production plant – the Company's sole production facility which housed all of its inventory. Specifically, the complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company's operational status and financial projections, and failed to disclose the following adverse facts: (a) the Company had installed larger acetone storage tanks at the Sherbrooke production plant that facilitated their storing dangerously high levels of acetone that exceeded those permitted by the certificate of authorization issued by the Québec Ministry of Environment in 2002; (b) the Company had failed to obtain permission from the Quebec government to commence expansion of the Sherbrooke production facility; (c) the Company had been chasing market share at the cost of margins and would see its profit margins collapse by the end of the Class Period; and (d) as a result, the Company was not on track to “maintain [its] operational performances, execute [its] growth strategy, [or to] continue delivering positive results.” The price of Neptune stock declined between November 8, 2012 before the close of trading, when an explosion and fire destroyed the Sherbrooke production facility, and November 26, 2012, when the Company's stock, which had been halted by the Nasdaq following the explosion, resumed trading and plunged $1.18 per share – approximately 32% of its closing price on November 7, 2012, the evening before the explosion – on extremely high volume of more than 3.8 million shares traded. Plaintiff seeks to recover damages on behalf of all purchasers of Neptune common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm's recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information. Robbins Geller Rudman & Dowd LLPSamuel H. Rudman, 800-449-4900David A. Rosenfelddjr@rgrdlaw.com