Brower Piven, a law firm specializing in securities litigation, is sending out an appeal reminding investors in Teva Pharmaceutical Industries Ltd (NYSE:TEVA) that the deadline for those seeking to become the lead plaintiff in a class action suit against the company and some of its officers is fast approaching. The investors have until January 5, 2017 to be considered for the role of lead plaintiff.
American Depository Shares
Filing of the Leone v. Teva Pharmaceutical Industries Limited et al case was done in the state of California at the U.S. District Court for the Central District of California on December 27, 2016. The suit was filed on behalf of investors who purchased American Depository Shares of Teva Pharmaceutical Industries Ltd between February 10, 2015 and November 3, 2016.
In the complaint brought against Teva, the defendant is accused of violating the Securities Exchange Act of 1934. The complaint alleges that the defendant failed to reveal in the course of the class period that it was involved or was involving itself in conduct that would lead to being put under an anti-trust investigation by the State of Connecticut Office of the Attorney General and the U.S. Department of Justice. Additionally, as a result of the defendant’s conduct, prosecutors went on to file criminal charges against the defendant on suspicion of having engaged in price collusion. The defendant is also accused of lacking effective financial reporting internal controls.
Court appointment
While anyone can apply for appointment as the lead plaintiff, the decision rests with the court. The duties of the lead plaintiff will include directing the litigation and participating in the making of crucial decisions such as whether to agree to a settlement.
Selection of the lead plaintiff is done based on the loss incurred. Thus the lead plaintiff will be chosen from the applicants who lost the most while investing in the American Depository Shares of Teva in the course of the class period.
Another law firm specializing in securities, Faruqi & Faruqi, is also calling for investors in Teva’s ADS shares to seek appointment as the lead plaintiff.
In Wednesday’s trading, shares of Teva Pharmaceutical Industries Ltd fell by 1.13% to close the day at $35.93.
