A securities class action was recently filed to represent individuals and organizations that bought securities of Roka Bioscience, Inc.
Headquartered in Warren, New Jersey, Roka Bioscience is a molecular diagnostics firm that provides the market with tests for food pathogens. Its flagship product, Atlas instrument, is an automated diagnostic testing instrument designed to help lower errors and cut labor costs in foodborne pathogen laboratories.
Brower Piven suit
On Dec. 29, 2014, securities litigation law firm Brower Piven announced that it had filed a shareholder class action suit to represent all entities and persons who purchased company securities pursuant or traceable to the company’s initial public offering, held on or about July 17, 2014.
The investors represented in the lawsuit include those who bought the company’s common stock between July 17, 2014, and November 6, 2014. These dates are inclusive, and represent the class period.
The lawsuit brought forth by Brower Piven included allegations the defendants breached the Securities Act of 1933 when they neglected to disclose important variables affecting demand for its Atlas instrument.
Rosen Law firm legal claim
The Rosen Law Firm announced a purported shareholder class action suit on Dec. 24, 2014, which was also brought forth to represent purchasers of Roka Bioscience’s common stock in its IPO on July 17, 2014, as well as those who bought these securities in the secondary markets between this time and Nov. 6, 2014.
This securities class action also involved allegations the company’s IPO documents did not reveal details about the market that surrounded the Atlas instrument’s demand.
Rosen legal investigation
On Dec. 22, 2014, the law firm indicated that it was investigating a potential lawsuit against Roka Bioscience, based on allegations the company might have neglected to disclose known uncertainties and market developments.
When announcing the investigation, the law firm emphasized that the molecular diagnostics firm is currently at an early stage of commercialization, and its revenue relies heavily on how many Atlas diagnostic instruments it has been able to install.
When the company held its IPO on July 17, 2014, it represented to the public that it had thus far installed 36 Atlas instruments, according to the investigation. During this primary offering, it was able to sell shares for $12.
Roka Bioscience announced its third quarter results on Nov. 6, 2014, revealing that during the aforementioned three-month period, it had not placed any Atlas instruments. In addition, the molecular diagnostics firm announced a surprise loss of $0.64 per share for the quarter.
That day, markets responded to the news by pushing the company’s stock to $3.00 per share from $8.34, according to the securities class action brought forth by The Rosen Law Firm.
What investors can do
The two law firms advised investors on what they can do if they are eligible to participate in the aforementioned lawsuits. Brower Piven stated that if organizations or individuals bought company securities on or after July 17, 2014, retained them through the obtainment of negative information either during or at the end of the class period, and then incurred a loss on this investment, they can learn more by visiting the law firm’s website.
In addition, investors interested in serving as lead plaintiff in the Brower Piven lawsuit have until Feb. 23, 2015, to move the court for appointment to this role.
The securities class action filed by The Rosen Law Firm has not yet attained class action status. As a result, eligible investors are not represented by counsel unless they choose to obtain one. Individuals and or organizations in this circumstance can obtain representation, or remain an absent class member.