MERION, Pa., Feb. 29, 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:
The prices of Cardiovascular Systems securities began to fall beginning in May 2014, when the Company disclosed it had received the letter from the U.S. Attorney's Office for the Western District of North Carolina stating that it was investigating the Company in connection with the possible submission of false claims to federal and state health care programs. In October 2015, Cardiovascular Systems reported disappointing financial results due to the continued reformation of its sales force as a result of the U.S. Attorney's investigation of the Company. Then on January 21, 2016, the Company again reported disappointing results due to the continued effects of the sale force transition. On this news, the price of Cardiovascular Systems shares fell $3.72 per share, or 30%, to close at $8.74 per share on January 22, 2016, a decline of over 75% from the stock's Class Period high price.
Ingram Micro Inc. (NYSE: IM) 2/19/16
The firm is investigating the Board of Directors of Ingram Micro Inc. ("Ingram" or the "Company") (IM) for potential breaches of fiduciary duties in connection with the sale of the Company to Tianjin Tianhai Investment Company, Ltd. for approximately $6.0 billion in an all-cash transaction. The Company's stockholders will only receive $38.90 for each share of Company common stock they own.
The investigation focuses on whether Ingram's Board of Directors breached their fiduciary duties to the Company's stockholders by failing to conduct a fair sales process and whether and by how much this proposed transaction undervalues the Company to the detriment of Ingram's shareholders.
The firm is investigating whether defendants materially misstated the Company's business metrics and financial prospects by failing to disclose that: (a) an increased number of higher risk Private Education Loan borrowers were not timely repaying their loans; (b) Navient's loan loss reserves were materially understated; (c) the Company was engaged in unsound business practices; (d) the Company's operating structure was bloated; (e) a significant portion of the Company's low-rate credit facilities were at risk of being reduced or eliminated, which would cause the Company to face higher borrowing costs; and (f) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company's prospects and growth, including its ability to report core earnings of $2.10 per share and $2.20 per share in 2014 and 2015, respectively. As the truth about the Company's business and prospects was revealed through a series of partial disclosures, the price of Navient's publicly traded securities declined precipitously, erasing hundreds of millions of dollars in market capitalization.
Skullcandy Inc. (Nasdaq: SKUL) 8/7/15 thru 1/11/16
On January 11, 2016, Skullcandy issued a press release updating the company's financial outlook for the fourth quarter of 2015 and announced that the company had missed its quarterly net sales projections. Following this news, Skullcandy stock fell $1.29, more than 28%, to close at $3.26 per share on January 12, 2016.
The firm is investigating whether defendants issued materially false and misleading statements to investors and failed to disclose that: (1) Skullcandy's revenue and net income guidance for the third quarter and full year 2015 were unattainable; (2) Skullcandy's revenue and net income guidance for the fourth quarter and full year 2015 were unattainable; (3) Skullcandy faced challenges with its largest Chinese distributor; (4) defendant Rick Alden and Ptarmagin, an entity controlled by Alden, engaged in insider selling and realized proceeds in excess of $4 million with knowledge of undisclosed materially adverse facts; and (5) as a result, defendants' statements about Skullcandy's business, operations, and prospects were potentially false and misleading and lacked a reasonable basis.
Primero Mining Corp. (NYSE: PPP) 10/5/12 thru 2/3/16
The firm is investigating whether defendants issued false and misleading statements and/or failed to disclose material facts about PEM's tax compliance, including that PEM was inappropriately recording revenues and taxes from sales under its silver purchase agreement with Silver Wheaton. As a result of these potential false statements and/or omissions, Primero securities traded at artificially inflated prices during the Class Period, with its shares reaching a high price of over $8 per share.
On February 3, 2016, Primero disclosed that PEM had received a legal claim from the Mexican tax authorities seeking to nullify the APA issued in 2012. On this news, the price of Primero shares fell $0.74 per share or over 28% to close at $1.89 per share on February 4, 2016.
The firm has commenced an investigation into the fairness of the sale of Newport Corp. to MKS Instruments, Inc. (NASDAQ: MKSI) for $23.00 in cash per share. On February 23, 2016, Newport announced it had signed a definitive merger agreement with MKS. Under the terms of the agreement, MKS will acquire all of the outstanding shares of common stock of Newport for $23.00 per share in an all cash transaction.
The investigation concerns whether Newport's board failed to satisfy their duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Newport's shares of common stock.
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.
SOURCE Law Offices of Marc S. Henzel