Robbins Arroyo LLP: Intrexon Corporation (XON) Misled Shareholders According to a Recently Filed Class Action
May 04 2016 - 8:17PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Intrexon Corporation
(NYSE: XON) in the U.S. District Court for the Northern District of
California. The plaintiff brings the complaint on behalf of all
purchasers of Intrexon securities between May 12, 2015 and April
20, 2016, for alleged violations of the Securities Exchange Act of
1934 by Intrexon's officers and directors. Intrexon operates in the
synthetic biology field in the United States.
View this information on the law firm's Shareholder Rights
Blog:www.robbinsarroyo.com/shareholders-rights-blog/intrexon-corporation
Intrexon Accused of Overstating Its Revenue
According to the complaint, during 2015 and 2016, Intrexon filed
multiple quarterly reports and an annual report with the U.S.
Securities and Exchange Commission, attesting to the accuracy and
effectiveness of the company's internal controls over financial
reporting. However, the complaint alleges that these statements
were misleading because Intrexon was overstating its revenue. On
April 21, 2016, analyst firm Spotlight Research ("Spotlight")
issued a report asserting that Intrexon's revenues were overstated
by 50% through transactions with related parties. On this news,
Intrexon stock fell $9.73 per share, or approximately 26%, to close
at $27.10 per share on April 21, 2016.
Then, on April 27, 2016, Spotlight elaborated on Intrexon's
transactions with related parties, alleging that Intrexon gives
cash to an Exclusive Channel Collaboration partner that gives it
back to Intrexon in exchange for "services" rendered. Spotlight
notes that although no meaningful products are being
commercialized, Intrexon is able to recognize substantial revenue
growth through moving their own cash via these transactions. The
report further stated that collaboration revenues represent 50% of
Intrexon's revenue, so its revenue is overstated by a factor of
two. Additionally, when Intrexon's financial statements were
compared to its customers' financial statements, large
discrepancies were found between the revenue that Intrexon reported
and the payments that its customers claimed to have made to
Intrexon. For example, in its 2015 10-K, Intrexon claimed that
Ziopharm paid them $14.6 million and $19.3 million in 2014 and
2015, respectively, while Ziopharm's 2015 10-K showed they paid
Intrexon $12 million and $16.3 million in 2014 and 2015,
respectively, or 16% less than the amount claimed by Intrexon.
Intrexon Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160504006937/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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