SAN DIEGO, Calif. and YORK, Pa., Nov. 6, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Unilife Corporation (NASDAQ: UNIS) ("Unilife") has filed a federal securities fraud class action complaint in the U.S. District Court for the Middle District of Pennsylvania. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between July 13, 2011 and September 9, 2013 (the "Class Period").
Unilife Accused of Misleading Investors Regarding the Company's Compliance with FDA Regulations
Shares of Unilife fell $0.52 per share, or more than 14%, on September 4, 2013, after publication of a Forbes article discussing Unilife's fiscal year loss of $63.2 million on revenue of just $2.7 million. The report also disclosed that customer demand for Unilife's products was such that the company's primary manufacturing facility was operating at 3% of capacity, or approximately 2 million syringes per year. Then, on September 9, 2013, Forbes published an article detailing allegations in a lawsuit filed by a former Unilife employee concerning various regulatory violations at the company and the suppression of internal reports detailing Unilife's inability to produce the company's syringes below cost.
According to the complaint, defendants made false and/or misleading statements and failed to disclose that: (i) the company's Unifill syringes failed to comply with the U.S. Food and Drug Administration's ("FDA") validation processes; (ii) the company's Quality Management System failed to comply with FDA's regulations; and (iii) Unilife intentionally increased purchases of Unifill component parts to create the appearance that it was producing at increased volumes despite low customer demand and lack of capacity to support those purchases.
Unilife Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
If you invested in Unilife and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: http://www.robbinsarroyo.com/shareholders-rights-blog/unilife-corporation/.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP