Retrophin is a biopharmaceutical firm that concentrates on developing, manufacturing and distributing therapies for numerous diseases. The biopharmaceutical firm collaborates with both patient advocacy groups and doctors to get a better sense of what they need.
The company has also made an effort to put its resources into developing treatments in areas where the biopharmaceutical industry has failed to produce compelling results.
Securities class action lawsuit filed
The Rosen Law Firm announced on Oct. 21, 2014, that it had brought forth the legal claim in an effort to recover the losses of investors who bought company stock between March 27, 2014 and Sept. 30, 2014. This time is known as the class period. The suit involves allegations the company, as well as specific directors and officers, failed to disclose certain key facts.
Faruqi & Faruqi class action lawsuit
It is worth noting that Faruqi & Faruqi, LLP has filed a similar legal action, which represented people who bought the firm's securities during the same class period. This securities class action lawsuit claimed the company and its executives made disclosures involving the organization's operations, business and prospects that breached federal securities law.
Securities class action claims
More specifically, the Faruqi & Faruqi suit alleged that during the class period, the biopharmaceutical firm made false and or misleading statements, and or failed to reveal the company's CEO and founder breached Retrophin's Incentive Compensation Plan and other securities rules, which included making irregular stock trades and granting shares in violation of the Compensation Plan and then refraining from disclosing stock grants to employees.
The suit filed by The Rosen Law Firm similarly claimed that during the class period, the company, as well as certain directors and officers, failed to reveal that, among other things, the company's CEO broke securities rules, including committing stock-trading irregularities.
These irregular activities included breaking the company's Incentive Compensation Plan through granting shares and then not informing company employees about these security distributions.
Retrophin announces CEO termination
The biopharmaceutical firm's board of directors fired the company's CEO, and announced this in a press release issued on Sept. 30, 2014. Following this event, company shares fell $0.40, or more than 4 percent, to close at $8.62 each on Oct. 1, 2014.