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Kirby McInerney LLP Announces That A Securities Fraud Class Action Lawsuit Has Been Filed Against Akorn, Inc.
[March 05, 2015]

Kirby McInerney LLP Announces That A Securities Fraud Class Action Lawsuit Has Been Filed Against Akorn, Inc.


Kirby McInerney LLP announced today that a class action lawsuit is pending in the United States District Court for the Northern District of Illinois on behalf of investors who acquired Akorn, Inc. ("Akorn" or the "Company") (Nasdaq:AKRX) securities during the period from April 17, 2014 through March 2, 2015 (the "class period"). Pursuant to applicable law, investors have until May 4, 2015 to file a motion to be appointed as lead plaintiff in the investor lawsuit.

The lawsuit charges that: (1) as of December 31, 2014, more than eight months after it acquired Hi-Tech Pharmacal Co., Inc. and four months after it acquired VersaPharm Incorporated, Akorn had not yet integrated those subsidiaries into its centralized accounting department and accounting systems; (2) certain data related to Hi-Tech and VersaPharm could not be timely collected and compiled; (3) due to these delays, the Company would be unable to timely complete its assessment of the effectiveness of its internal control over financial reporting as of December 31, 2014; and (4) weaknesses existed relating to the completeness and accuracy of underlying data used in the reporting of its financial results and disclosures in its Form 10-K.

Despite these circumstances, on February 26, 2015, the Company announced its Preliminary Fourth Quarter and Full Year 2014 Results, in which it touted strong performance for the quarter and highlighted accomplishments relating to these acquisitions. Raj Rai, Akrn's Chief Executive Officer, added that "2014 was a transformative and rewarding year for Akorn."



However, just days later, on March 2, 2015, the Company issued a press release announcing that it would need an extension to file its annual report for the year ending December 31, 2014 because it "experienced unforeseen delays in collecting and compiling certain financial and other related data that would be included in the Form 10-K relating to the VersaPharm and Hi-Tech Pharmacal subsidiaries which were not integrated into the Company's centralized accounting department and accounting systems as of December 31, 2014."

As a result of this news, shares of Akorn fell from $53.71 on March 2, 2015 to close at $49.33 on March 3, 2015, a loss of value of over 8%.


If you acquired Akorn securities during this period and you are interested in learning more about this matter and any rights you might have with respect to these claims, contact Jess Kelley at [email protected], by telephone at (212) 371-6600, or by filling out this form. Please bear in mind that some of these rights may be time-sensitive. Counsel believes that investors who purchased Akorn securities during the period from February 26, 2015 through March 2, 2015 have a particularly strong claim, and are encouraged to contact Kirby McInerney immediately to discuss their rights.

Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, whistleblower, antitrust and consumer litigation. The firm has specialized in complex litigation, including securities class actions, for several decades. Kirby McInerney LLP has repeatedly demonstrated its expertise in this field, and has been recognized by various courts that have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars, and the firm's achievements and quality of service have been chronicled in numerous published decisions. Additional information about the firm can be found at Kirby McInerney LLP's website: http://www.kmllp.com.


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