Health & Fitness
Health and Fitness
Health and Fitness
Thu, August 12, 2010
Wed, August 11, 2010
Roy Jacobs & Associates Files Class Action on Behalf of Purchasers of Alphatec Holdings, Inc. Securities ("ATEC")
NEW YORK--([ BUSINESS WIRE ])--Roy Jacobs & Associates announces that it has filed a class action complaint in the United States District Court for the Southern District of California on behalf of purchasers of the common stock of Alphatec Holdings, Inc.(aATECa or the aCompanya) (NASDAQ: ATEC) during the period from December 18, 2009 through August 5, 2010, alleging claims for securities fraud pursuant to the federal securities laws. The Complaint was filed against ATEC and certain of its officers, directors and controlling persons.
For further information, please contact Roy L. Jacobs, Esq. toll-free at 1-888-884-4490 or by e-mail at [ rjacobs@jacobsclasslaw.com ], or visit our Website at [ www.jacobsclasslaw.com ], where you can obtain further information and join the action.
ATEC designs, develops, manufactures and markets products for the surgical treatment of spinal disorders. The Complaint alleges that on December 17, 2009, the Company announced that it was going to acquire Scienta™x, S.A. (aScienta™xa) from HealthPointCapital Partners, L.P. and HealthPointCapital Partners II, L.P. (collectively, aHealthPointCapitala), which then owned 38% of ATECa™s shares, in an all stock transaction. With respect to the proposed transaction, the Company praised the Scienta™x acquisition and announced that it expected 2010 pro forma full-year revenue of $220 million to $225 million, and adjusted EBITDA of $32 million to $35 million (the aAggressive Projectiona). On this news, ATEC shares rose 8%. ATEC reiterated the Aggressive Projection on February 23, 2010, April 12, 2010 and May 10, 2010.
As further alleged in the Complaint, these statements were made to increase interest in ATECa™s stock, so that ATEC and HealthPointCapital could sell off a significant number of their ATEC shares at the highest price possible in an upcoming offering. In fact, the statements were unrealistic because: (a) pricing pressures were steadily increasing; (b) ATEC planned to dispose of its Asian distributor without any realistic plan to replace the revenues the distributor produced; (c) Scienta™x had exhibited almost no revenue growth in the first nine months of 2009, and its ability to market and sell in 2010 would be disrupted by any acquisition; and (d) integrating the two companies would be a long process, which would negatively affect 2010 revenues. On March 26, 2010, ATEC closed the Scienta™x acquisition. On Aril 12, 2010, the Company announced a follow-on public offering, wherein ATEC and HealthPointCapital would each sell 8 million shares. The offering closed on April 21, 2010 and, with over-allotments, ATEC and HealthPointCapital each sold 9.2 million shares, for $46 million in gross proceeds.
On August 5, 2010, ATEC announced disappointing quarterly results and an extreme revision of the Aggressive Projection. As a result, ATEC shares dropped 46%, to close at $2.39 per share, resulting in a loss of shareholder value of over $200 million in one trading day.
If you purchased ATEC common stock: (i) during the period from December 18, 2009 through August 5, 2010, whether or not you still hold your shares, and/or (ii) prior to December 18, 2009 and still hold your shares, and you are interested in discussing your rights free of charge, please contact Roy L. Jacobs. Mr. Jacobs will be glad to personally speak with you, or you may visit our Website at [ www.jacobsclasslaw.com ].
You may qualify to serve as Lead Plaintiff on behalf of the Class. All motions for appointment as Lead Plaintiff must be filed by October 12, 2010. You need not sell your shares to serve as Lead Plaintiff.
