INVESTOR ALERT: Class Action Lawsuit Against Enzymotec Ltd. Announced by Law Offices of Howard G. Smith
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of purchasers of the securities of Enzymotec Ltd. (“Enzymotec” or the “Company”) (NASDAQ:ENZY) pursuant and/or traceable to the Company’s Registration Statement and Prospectus issued in connection with the Company’s initial public offering on or about September 27, 2013, and/or on the open market between September 27, 2013 and August 4, 2014, inclusive (the “Class Period”).
Enzymotec develops, manufactures and markets bio-active lipid ingredients used in the production of various nutritional products. The Company’s primary revenue source is its baby formula business, including the popular InFat line of products. The Complaint alleges that the Registration Statement and Prospectus contained materially false and misleading statements and omitted material information, and that defendants misrepresented and/or failed to disclose throughout the Class Period that:
- Enzymotec’s Chinese business was subject to material and readily identifiable compliance regulations from the Chinese government.
- The Company’s baby formula business in China was jeopardized and subject to increased volatility and decreased revenues.
- The Company’s joint venture with AarhusKarlshamn AB, which marketed the popular InFat product, was crumbling and subjected the Company to liability and decreased revenues.
- Defendants’ positive statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On May 14, 2014, the Company disclosed for the first time that “Chinese regulations require infant formula manufacturers to make certain changes to their production chain,” and as a result the Company’s revenues were lower. Then, on August 5, 2014, the Company further disclosed the increased impact of the Chinese regulations on its sales of infant formula, and announced financial results that were significantly lower than the prior year in almost all respects. As a result of this news, Enzymotec shares declined $5.85 per share, or nearly 40%, to close on August 5, 2014, at $9.11 per share, on volume of more than 1 million shares.
If you are a member of the Class described above, you have until November 4, 2014, to move the Court to serve as lead plaintiff, if you meet certain legal requirements. 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 wish to learn more about this action, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to email@example.com, or visit our website at http://www.howardsmithlaw.com.
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