NEW YORK, March 26, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Psychemedics Corporation ("Psychemedics" or the "Company") (NASDAQ: PMD) of the April 3, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of all those who purchased Psychemedics securities between February 28, 2014 and January 30, 2017 (the "Class Period"). The case, Baughman v. Psychemedics Corporation et al, No. 1:17-cv-10191 was filed on February 3, 2017, and has been assigned to Judge Richard Gaylore Stearns.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) through its affiliate, Psychemedics Brasil Exames Toxicológicos Ltda. ("Psychemedics Brasil"), the Company engaged in anticompetitive conduct to maintain a monopoly over the Brazilian market in violation of the law; (ii) subsequently, Psychemedics lacked effective internal controls over financial reporting; and (iii) as a result, the Company's public statements were materially false and misleading.
Specifically, on January 31, 2017, Bloomberg reported, among other things, that a Brazilian judge had ordered the Company's local representative in Brazil, Psychemedics Brasil, to compensate Omega Laboratories, Inc. USA for losses caused by anticompetitive practices used for the purpose of "preventing other companies from accessing (the) market," an indemnification that may cost the Company millions of dollars.
On this news, Psychemedics' share price fell from $25.62 per share on January 30, 2017 to a closing price of $18.87 on January 31, 2017 —a $6.75 or a 26.35% drop.
Request more information now by clicking here: www.faruqilaw.com/PMD. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Psychemedics' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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SOURCE Faruqi & Faruqi, LLP