The investigation concerns whether Emergent and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On June 22, 2016, pre-market, Emergent announced that the U.S. government had issued two official solicitation notices indicating that it would only be purchasing 29.4 million doses of the Company's BioThrax vaccine for the country's Strategic National Stockpile over the following five years—approximately one-third less than the 44.75 million doses in the Company's original contract and far less than the 75 million doses the Company had led the investment community to believe the U.S. government sought to purchase. Emergent also disclosed that instead of more first-generation BioThrax anthrax vaccine, the U.S. government was seeking to procure a newer, faster-working next-generation anthrax vaccine, once one was approved, and that it was putting its supply bid for the rest of its anthrax vaccine procurement out to other companies, such that Emergent stood to lose its lucrative exclusivity.
On this news, Emergent's stock price fell $7.99 per share, or more than 20%, to close at $31.33 on June 22, 2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP