Health & Fitness
Tue, January 10, 2012
SAN DIEGO--([ BUSINESS WIRE ])--Shareholder rights firm [ Robbins Umeda LLP ] is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Pacific Biosciences of California, Inc. (NASDAQ: PACB). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at 800-350-6003, [ gdelgaizo@robbinsumeda.com ], or via the [ shareholder information form ] on the firm's website.
Robbins Umeda LLP's investigation focuses on whether officials at Pacific Biosciences breached their fiduciary duties to shareholders, maintained woefully inadequate controls, and wasted corporate assets to the detriment of the company and investors. In particular, the firm is investigating allegations that members of the board of directors failed to disclose to investors significant known defects with the company's third generation human genome sequencing technology, prior to the company's October 27, 2010 initial public offering. Specifically, it is alleged that officials at the company failed to disclose that Pacific Biosciences' DNA sequencing technology was plagued with speed, accuracy, and mechanical issues that undermined its commercial viability.
On August 5, 2011, J.P. Morgan downgraded its rating of Pacific Biosciences, projected that the company would not become profitable until 2015, and lowered its target price for the company to $10 per share. On this news, the price of Pacific Biosciences's stock closed on August 5, 2011, at $6.50, a decline of $3.40, or over 34% of its value. Then, on September 20, 2011, Pacific Biosciences was forced to announce that it was reducing its workforce by approximately 28%. The market reacted immediately to this news. The company's stock, which closed at $5.56 on September 20, 2011, lost $1.31 to close at $4.25 on September 21, 2011, a decline of almost 24% of its value.
Robbins Umeda LLP highlights that Pacific Biosciences shareholders have the option to file a [ derivative action ] to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include [ corporate governance ] reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and 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. For more information, please go to [ http://www.robbinsumeda.com ].
Press release link: [ http://www.robbinsumeda.com/shareholders-rights-blog/pacific-biosciences/ ]
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