Cohen Milstein has announced that a settlement-in-principle has been reached in a proposed class action lawsuit brought on behalf of purchasers of Impax Laboratories, Inc. (“Impax”) common stock between June 6, 2011 and March 4, 2013. Under the proposed settlement, the defendants – Impax and two of Impax’s former executives – agreed to pay investors $8 million to resolve the lawsuit. Cohen Milstein serves as the court-appointed Lead Counsel in the case. The Lead Plaintiff is the Boilermaker-Blacksmith National Pension Trust.
According to the complaint, the defendants issued false and misleading information to investors by failing to disclose egregious, pervasive, and chronic noncompliant conditions at Impax’s Hayward manufacturing facility, as well as Impax’s inability to remedy those issues. The complaint further alleges that the price of Impax stock declined significantly when the truth about Impax’s noncompliance emerged. The action charges that the defendants’ conduct constitutes violations of federal securities laws, including Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, which prohibit fraud or deceit in connection with the purchase or sale of a security.
The defendants have denied any wrongdoing and challenged the complaint’s allegations through a motion to dismiss. On April 18, 2014, the Court issued a 34-page opinion denying the defendants’ motion to dismiss in all material respects.
The proposed settlement is subject to the approval of the Court. If approved, the balance of the settlement fund, after deduction of any Court-approved fees and expenses, will be distributed to investors who qualify as class members and return valid and timely claim forms.
Cohen Milstein partners Daniel S. Sommers and Christopher Lometti, along with associate Genevieve O. Fontan, represent the Lead Plaintiff.
Complaint - September 13, 2013
Motion to Dismiss Order - April 18, 2014