NEW YORK, Jan. 22, 2016 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a securities class action has been filed in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of all persons or entities who purchased GW Pharmaceuticals plc ("GW Pharmaceuticals" or the "Company") (GWPH) American Depository Receipts ("ADRs") between December 4, 2014 and January 8, 2016 (the "Class Period"). The complaint charges GW Pharmaceuticals and certain of its officers with violations of the Securities Exchange Act of 1934.
GW Pharmaceuticals is a biopharmaceutical company that, along with its subsidiaries, engages in discovering, developing, and commercializing cannabinoid prescription medicines.
The complaint charges GW Pharmaceuticals and certain of its officers with violations of the federal securities laws. Specifically, the complaint alleges that throughout the Class Period, Defendants failed to disclose that: (1) the Company lacked effective internal financial controls; (2) the Company lacked effective controls over completeness and valuation of clinical trial accruals; and (3) as a result of the foregoing, Defendants' statements about GW Pharmaceuticals' business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On January 10, 2016, the Sunday Times reported that GW Pharmaceutical had disclosed in its annual report for the fiscal year ending September 30, 2015, that the Company's internal financial controls were not effective as of September 30, 2015, and further disclosed that management had determined that it lacked effective controls over its clinical trials. Specifically, that the annual report stated management lacked sufficient control to: (1) evaluate the completeness and accuracy of the calculation of clinical trial accruals due to the incorrect allocation of expenditure to clinical studies; or (2) ensure completeness of clinical trial accruals in connection with contractual progress payment liabilities.
On this news, GW Pharmaceuticals' American Depository Receipts ("ADRs") fell $3.55 or almost 6% to close at $56.31 per share on January 11, 2016.
Plaintiffs seek to recover damages on behalf of all Class members who invested in GW Pharmaceuticals ADRs during the Class Period. If you invested in GW Pharmaceuticals ADRs as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than March 21, 2016.
A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as an GW Pharmaceuticals investor and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or email@example.com.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs' firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.
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SOURCE Bernstein Liebhard LLP