Steinberg v. Opko Health, Inc. et al 1:18-cv-23786 — On September 14, 2018, investors sued Opko Health, Inc., (Opko, OPK, or the Company) in United States District Court for the Southern District of Florida. Plaintiffs in the Opko class action allege that they acquired Opko stock at artificially inflated prices between September 26, 2013 and September 7, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more information on the OPK Lawsuit, please contact us today!
Summary of the Allegations
According to its website, Opko (NASDAQ: OPK) engages in the development, manufacturing and distribution of “an extensive array of diagnostics and therapeutics for a wide range of indications and conditions.”
Founded in 1991, the Company employs more than 6,000 people in the United States and abroad. These employees work in Opko’s diagnostics and pharmaceutical divisions in the U.S., and in its “pharmaceutical platforms” in Ireland, Chile, Spain, and Mexico.
Opko is incorporated in Delaware and based in Miami, Florida. It had more than 550 million shares of common stock outstanding as of August 1, 2018.
Summary of Facts
Opko and three of its current and former officers and/or directors (the “Individual Defendants”) are now accused of deceiving investors by lying and withholding critical information about Opko’s business practices during the Class Period.
Specifically, they stand accused of omitting truthful information about the accuracy of Opko’s financial reporting and its participation in certain activities from SEC filings. By knowingly or recklessly doing so, they allegedly caused Opko stock to trade at artificially inflated prices during the time in question.
The truth came out in a lawsuit that the SEC filed in United States District Court for the Southern District of New York on September 7 2018. In it, the SEC alleged that “a number of entities and persons, including Opko and [its CEO Philip] Frost” had engaged in a so-called “pump-and-dump” scheme designed to “inflate the stock prices of various companies in which Opko and/or Frost had made substantial investments.” As alleged by the SEC the participants “quickly dumped their shares and left public investors holding the bag.”
A closer look…
As alleged in the September 14 complaint, the Company and/or Individual Defendants either made false and misleading public statements during the Class Period, or caused false and misleading public statements to be made during that time.
For example, by signing the Company’s annual and quarterly SEC filings during the class Period, the Defendants “attested to the accuracy of the Company’s financial reporting and represented that the financial statements contained no material misrepresentations.”
As part of the alleged “pump-and-dump” scheme, they accused Seeking Alpha to publish a September 26, 2013 article that “promoted the stock of Biozone” by “citing Frost’s ownership in Biozone based on his reputation as a savvy investor in biotech companies.”
Then, as part of the same scheme, they also caused Seeking Alpha to publish an April 8, 2015 article “in order to promote the stock of MabVax, by using Frost’s and Opko’s reputation…”
Finally, the Company and Individual Defendants “never disclosed their participation” in the alleged “pump-and-dump” activities.
Impact of the Alleged Fraud on Opko’s Stock Price and Market Capitalization
|Closing stock price prior to disclosures:
|Closing stock price the trading day after disclosures:
|One day stock price decrease (percentage) as a result of disclosures:
The following chart illustrates the stock price during the class period:
Actions You May Take
If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.
NOTE: The deadline to file for lead plaintiff in this class action is November 13, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.
In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Opko common stock using court approved loss calculation methods.
Recently Filed Cases
Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action. Please contact us if you would like an LK report for any of these cases:
Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse. With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.
Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients. Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.