What happend to Orthofix shareholders on July 29, 2013?
Orthofix is a medical device company that manufactures and sells medical equipment used principally by musculoskeletal medical specialists for spine and orthopedic applications. On July 29, 2013, Orthofix issued a press release announcing that it was delaying the release of its financial results for the second quarter of 2013 and that additional time was needed to review matters relating to revenue recognition for prior periods. A week later on August 6, 2013, Orthofix issued a second press release stating that it would restate its financial statements for fiscal years 2011 and 2012 and the first quarter of 2013.
Shareholders lost over 16% of their marker value in one trading day.
This class action seeks answers: Did senior executives of Orthofix knowingly misrepresent the financial condition of the company prior to the summer of 2013?
OFIX shareholders take it on the chin
On July 29, 2013, OFIX traded straight down, from the prior days close of 27.40 to 22.94. THis represents over 86.5 million in shareholder loss in a single day, or 16.27% of the value of the entire company.
Who currently qualifies to be part of the class action?
Basic allegations contained in the Orthofix securities fraud class action complaint
The complaint alleges that Orthofix and certain senior executives misrepresented or failed to disclose the following adverse facts, which were known to defendants or recklessly disregarded by them:
- Orthofix improperly recognized revenue during 2011 and 2012;
- Orthofix’s previously issued consolidated financial statements as of and for the fiscal years ended December 31, 2011 and December 31, 2012, and for the interim quarterly period ended March 31, 2013, should not be relied upon;
- Orthofix’s financial statements during 2011, 2012, and the first quarter of 2013 were materially false and misleading and violated generally accepted accounting principles and Orthofix’s publicly disclosed policy of revenue recognition;
- Orthofix’s Forms 10-Q and 10-K for fiscal years 2011 and 2012, as well as for the first quarter of 2013, failed to disclose then presently known trends, events or uncertainties associated with the Company’s revenues that were reasonably likely to have a material effect on Orthofix’s future operating results; and
- Orthofix’s disclosure controls and procedures over financial reporting were materially deficient and its representations concerning them during the Class Period, including certifications issued by defendants, were materially false and misleading.
As a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s financial performance and outlook.
Report your losses in Orthofix securities