BOCA RATON, Fla.--(BUSINESS WIRE)--
Robbins Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/opko-health-inc/) today announced that a class action has been commenced on behalf of purchasers of OPKO Health, Inc. (“Opko”) (OPK) common stock during the period between October 8, 2013 and September 7, 2018 (the “Class Period”). This action was filed in the Southern District of Florida and is captioned Camhi v. Opko Health, Inc., et al., No. 18-cv-24137.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Opko common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from September 12, 2018. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/opko-health-inc/.
The complaint charges Opko and its Chairman and CEO, Phillip Frost, with violations of the Securities Exchange Act of 1934. Opko is a healthcare company engaged in the diagnostics and pharmaceuticals businesses in the United States and internationally. For years, Opko has been closely associated with Frost, a prominent healthcare investor and entrepreneur, who has served as the Company’s Chairman and CEO since March 2007. Frost’s reputation as a successful healthcare entrepreneur was extremely valuable to Opko and of material importance to the Company’s investors.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Opko’s business and prospects. Specifically, the complaint alleges that defendants failed to disclose that defendant Frost had participated as a central member in an illegal pump and dump scheme; that defendants Frost and Opko invested in two companies that were part of the scheme in order to enrich Frost and his associates and not to benefit Opko or the Company’s shareholders; that Opko’s investments in these companies were worth considerably less than represented because of defendants’ involvement in the scheme; that defendant Frost had taken efforts to conceal his control over target companies in the scheme, including by falsely stating that he was acting as a passive investor in SEC filings and by concealing his concerted efforts to facilitate illegal stock manipulation with other members of the scheme; that defendant Frost had facilitated the publication of false and misleading promotional materials in order to artificially inflate the stock of target companies in the scheme; and that, as a result, Opko was subject to significant and undisclosed legal, regulatory, reputational and financial risks should defendant Frost’s involvement in the scheme come to light. As a result of this information being concealed from the market, the price of Opko stock was artificially inflated to more than $19 per share during the Class Period.
Then on September 7, 2018, the SEC issued a press release that named defendants Frost and Opko as key figures in the illegal pump and dump scheme. The press release stated that the SEC had “charged a group of 10 individuals and 10 associated entities for their participation in long-running fraudulent schemes that generated over $27 million from unlawful stock sales and caused significant harm to retail investors who were left holding virtually worthless stock.” The press release further stated that, according to the SEC’s complaint, from 2013 to 2018, “a group of prolific South Florida-based microcap fraudsters led by Barry Honig manipulated the share price of the stock of three companies in classic pump-and-dump schemes. Miami biotech billionaire Phillip Frost allegedly participated in two of these three schemes. Honig allegedly orchestrated the acquisition of large quantities of the issuer’s stock at steep discounts, and after securing a substantial ownership interest in the companies, Honig and his associates engaged in illegal promotional activity and manipulative trading to artificially boost each issuer’s stock price and to give the stock the appearance of active trading volume. According to the SEC’s complaint, Honig and his associates then dumped their shares into the inflated market, reaping millions of dollars at the expense of unsuspecting investors.” On this news, the price of Opko stock fell to $4.58 per share before trading was halted by the SEC, an 18% decline from the prior day’s close. When trading resumed on September 14, 2018, the stock fell an additional 15% to close at $3.90 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of Opko common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.