The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) was launched concerning potential breaches of fiduciary duties by certain Salix Pharmaceuticals directors and officers.
Investors who purchased shares of Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) in 2012 or earlier and currently hold any of those NASDAQ:SLXP shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in NASDAQ:SLXP stocks follows a lawsuit filed recently against Salix Pharmaceuticals over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:SLXP stocks, concerns whether certain Salix Pharmaceuticals officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 8, 2013 and November 6, 2014 the defendants made allegedly false and misleading statements and allegedly concealed material information regarding deteriorating demand for Salix Pharmaceuticals, Ltd top-selling drug Xifaxan and other Salix Pharmaceuticals, Ltd drugs and wholesaler inventory levels of Xifaxan and other Salix Pharmaceuticals, Ltd drugs, which were significantly greater and rising more rapidly than revealed to investors.
Furthermore, the plaintiff alleges that Salix Pharmaceuticals, Ltd’s reserves for outstanding inventory were understated and, because of this understatement, its reported quarterly and annual net revenue and earnings per share figures were overstated, and that Salix Pharmaceuticals, Ltd’s disclosure controls and procedures and its internal controls over financial reporting and accounting were subject to material weaknesses.
The plaintiff claims that the true state of the demand for Xifaxan and other Salix Pharmaceuticals, Ltd drugs and the consequences for the Company’s business were revealed on November 6 and 7, 2014, when Salix Pharmaceuticals, Ltd disclosed that its longstanding Chief Financial Officer, Adam C. Derbyshire, had abruptly resigned, that its wholesaler inventory levels were three times greater than previously reported and the Audit Committee of Salix’s Board of Directors had retained outside counsel as part of an inquiry into the Company’s reporting of wholesale inventory of Xifaxan and other drugs, and that its previously issued guidance for full-year 2014 revenues would not be met and needed to be reduced by 12.5 percent.
Those who purchased shares of Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com