The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Portola Pharmaceuticals, Inc....
January 17 2020 - 4:01PM
Business Wire
The Law Offices of Frank R. Cruz announces that a class action
lawsuit has been filed on behalf of investors who purchased Portola
Pharmaceuticals, Inc. (“Portola” or the “Company”) (NASDAQ: PTLA)
securities between November 5, 2019 and January 9, 2020,
inclusive (the “Class Period”). Portola investors have until
March 16, 2020 to file a lead plaintiff motion..
If you are a shareholder who suffered a loss, click here to
participate.
On January 9, 2020, Portola announced preliminary net revenues
of only $28 million for the fourth quarter of 2019. Portola
attributed the result to a $5 million reserve adjustment for
short-dated product, and flat quarter-over-quarter demand.
On this news, the Company’s share price fell $9.98, or
approximately 40%, to close at $14.76 per share on January 10,
2020, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout
the Class Period, Defendants made materially false and/or
misleading statements, as well as failed to disclose material
adverse facts about the Company’s business, operations, and
prospects. Specifically, Defendants failed to disclose to
investors: (1) that Portola’s internal control over financial
reporting regarding reserve for product returns was not effective;
(2) that Portola was shipping longer-dated product with 36-month
shelf life; (3) that Portola had not established adequate reserve
for returns of prior shipments of short-dated product; (4) that, as
a result, Portola was reasonably likely to need to “catch up” on
accounting for return reserves; and (5) that, as a result of the
foregoing, Defendants’ positive statements about the Company’s
business, operations, and prospects were materially misleading
and/or lacked a reasonable basis.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Portola securities during the Class Period, you
may move the Court no later than March 16, 2020 to ask the
Court to appoint you as lead plaintiff. To be a member of the Class
you need not take any action at this time; you may retain counsel
of your choice or take no action and remain an absent member of the
Class. If you purchased Portola securities, have information or
would like to learn more about these claims, or have any questions
concerning this announcement or your rights or interests with
respect to these matters, please contact Frank R. Cruz, of The Law
Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los
Angeles, California 90067 at 310-914-5007, by email to
info@frankcruzlaw.com, or visit our website at
www.frankcruzlaw.com. If you inquire by email please include your
mailing address, telephone number, and number of shares
purchased.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20200117005472/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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