Aceto Corp. Hit With Securities Class Action
WASHINGTON, DC (April 25, 2018) — U.S. Market Advisors Law Group PLLC announces that a securities class action has been filed against Aceto Corp. (NASDAQ: ACET). The class action is on behalf of investors who acquired Aceto securities between August 25, 2017 and April 18, 2018 (the “Class Period”).
Allegations Against Aceto
Aceto is an international company engaged in the development, marketing, sales and distribution of finished dosage form generic pharmaceuticals, nutraceutical products, pharmaceutical active ingredients and intermediates, specialty performance chemicals inclusive of agricultural intermediates and agricultural protection products.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company failed to implement and enforce proper internal control to identify the misapplication of cash; (ii) the Company would incur large non-cash intangible asset impairment charges, (iii) the Company lacked effective internal control over financial reporting; (iv) the Company’s financial results for the fiscal year 2017 could not be relied upon; (v) the Company’s fiscal 2018 financial guidance was overstated; and, (vi) as a result of the foregoing, Aceto’s public statements were materially false and misleading at all relevant times.
On November 3, 2017, Aceto filed a Form 8-K with the SEC disclosing the nonreliance on its previously issued financial statements and a material weakness in internal control over financial reporting.
On April 18, 2018, Aceto issued a press release announcing an update on the Company’s business and financial condition. Therein, the Company disclosed the non-reliance on the previously issued 2018 fiscal year earnings guidance and the recording non-cash intangible asset impairment charges, including goodwill, in the range of $230 million to $260 million.
On this news, Aceto’s common stock declined $4.74 from a close price of $7.40 on April 18, 2018, to a close price of $2.66 on April 19, 2018, a drop of approximately 64.05% in the course of a trading day.
Pending Lead Plaintiff Deadline Approaching
Investors with losses have until June 25, 2018 to ask the Court to be appointed as Lead Plaintiff for the class. The Lead Plaintiff is a representative for absent members of the class. Investors do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action. Contact USMA Law Group to discuss this action.
About USMA Law Group
U.S. Market Advisors Law Group PLLC is a national law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
Contact
David P. Abel
(202) 274-0237
[email protected]