Law Offices of Marc S. Henzel Announces Investigation of Companies for Violations of the Federal Securities Laws

Jan 14, 2016, 09:11 ET from Law Offices of Marc S. Henzel

MERION, Pa., Jan. 14, 2016 /PRNewswire/ -- The Law Offices of Marc S. Henzel (www.henzellaw.com), a firm focusing on shareholder litigation, gives notice to shareholders of investigation into the following securities for violations of the Federal Securities Laws:

Chipotle Mexican Grill, Inc.  (NYSE: CMG)   2/4/15 thru 1/5/16
During the week of August 18, 2015, approximately 100 customers and employees of a Chipotle restaurant in Simi Valley, California became ill.  The Ventura County Environmental Health Division reported on September 4, 2015, that the illness was a norovirus outbreak. 

Between August 19 and September 3, 2015, about 64 people became sick from a Minnesota Chipotle. The Minnesota Department of Health reported on September 17, 2015, that the illness was salmonella, linked to tomatoes consumed at 22 Chipotle locations.

Chipotle closed all of its restaurants in Portland, Oregon and Seattle, Washington, around November 1, 2015, following reports of approximately 20 cases of E. coli by Chipotle patrons. Following this news, Chipotle stock fell $16.23, or approximately 2.5%, to close at $624.00 on November 2, 2015.

Esperion Therapeutics, Inc. (Nasdaq: ESPR)   8/18/15 thru 9/28/15
On August 17, 2015, Esperion reported to investors material events from an early August 2015 meeting with the FDA regarding the next phase of the approval process for ETC-1002. The Company stated that during the meeting it was informed by the FDA that the Company would not have to complete a CVOT to gain approval of ETC-1002. Esperion also informed investors that it had a "'clear regulatory path forward for development and approval of ETC-1002.'"

On September 28, 2015, Esperion stated in a news release that the FDA had actually "encouraged the Company to initiate a cardiovascular outcomes trial promptly" and it may be necessary to have a completed CVOT prior to approval.

As a result, the price of Esperion stock fell almost 50% from its previous close to $18.33 per share on unusually high volume.

Fitbit Inc. (NYSE: FIT)                 6/18/15 thru 1/6/16 The firm is investigating allegations that the heart rate monitoring systems on the Company's Charge HR and Surge devices were dangerously inaccurate and posed serious health risks to users. The stock dropped on news of a consumer class-action lawsuit being filed.

KLX Inc. (Nasdaq: KLXI)                    3/9/15 thru 11/11/15 On November 12, 2015, before the stock market opened, KLX announced preliminary financial results for the quarter ended November 30, 2015. In the press release, the Company disclosed that "[d]uring the third quarter of 2015, the Company performed an interim asset impairment test." Based on that asset impairment test, KLX stated, "the company expects to recognize a non-cash, after-tax asset impairment charge of approximately $435 million related to its Energy Services Group."

As a result of the news, the trading price of KLX's common stock plunged from a closing price of $39.00 on November 11, 2015 to close at $32.11 on November 12, 2015, a single-day loss of approximately 16%.

Affymetrix Inc. (NASDAQ: AFFX) (Nasdaq: AFFX)   1/11/16 Under the terms of the agreement, shareholders of Affymetrix Inc. will receive $14.00 in cash per share. The transaction represents a purchase price of approximately $1.3 billion. The investigation is focused on whether Affymetrix's Board of Directors is acting in the shareholders' best interests, whether the board considered alternatives to the acquisition, and whether the board has employed an adequate process to review and act on the proposed transaction.

Blount International, Inc. (NYSE: BLT)          1/12/16 Under the terms of the agreement, shareholders of Blount will receive $10.00 in cash for each share of Blount common stock.  The investigation concerns whether Blount board of directors failed to adequately shop the Company and obtain the best possible value for Blount shareholders before entering into an agreement with American Securities and P2 Capital Partners.

Baxalta Incorporated (Nasdaq: BXLT)             1/12/16
Under the terms of the agreement, Shire agreed to pay $18 in cash plus 0.1482 of its American depository shares for each Baxalta share, making this one of the few ever cash-and-stock deals involving a recent tax-free spinoff. The deal terms imply a valuation of $47.50 per share based on Shire's average share price over the past 30 trading days, the drug companies said, and a valuation of $45.57 based on Shire's closing price on 1/8/16.

If you would like to learn more about the investigation of these companies, would like to learn more about any potential claims or you wish to discuss these matters and have any questions concerning this announcement or your rights, please contact Marc S. Henzel (610) 660-8000, email at Mhenzel@Henzellaw.com, or to sign up online, visit the firm's website at www.henzellaw.com

The Law Offices of Marc S. Henzel is a national shareholder litigation firm representing shareholders & investors in various areas of securities laws including but not limited to: class actions, derivatives, transactional (buyouts/takeovers/mergers) and FINRA & NYSE Arbitrations.

Contact:
Law Offices of Marc S. Henzel
Marc S. Henzel
Email: Mhenzel@Henzellaw.com
Phone 610-660-8000
Website: www.henzellaw.com

LAW OFFICES OF MARC S. HENZEL
MERION STATION, PA 19066

 

SOURCE Law Offices of Marc S. Henzel



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