BENSALEM, Pa.–(BUSINESS WIRE)–$PTLA #classaction–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Portola Pharmaceuticals, Inc. (“Portola” or the “Company”) (NASDAQ: PTLA) securities between January 8, 2019 and February 26, 2020, inclusive (the “Class Period”). Portola investors have until March 16, 2020 to file a lead plaintiff motion.
Investors suffering losses on their Portola investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].
On January 9, 2020, Portola announced preliminary net revenues of only $28 million for the fourth quarter of 2019. Portola attributed the result to a $5 million reserve adjustment for short-dated product, and flat quarter-over-quarter demand.
On this news, the Company’s share price fell $9.98, or approximately 40%, to close at $14.76 per share on January 10, 2020, on unusually heavy trading volume.
On February 26, 2020, Portola announced its financial results for the fourth quarter and full year 2019, and disclosed details regarding problems with customers’ adoption of Andexxa. In addition, Portola disclosed a $27.5 million charge arising from its decision to discontinue operations related to Bevyxxa. On a conference call held that day, the Company’s CEO revealed that the Company ceased Bevyxxa commercialization efforts to undertake an internal restructuring in order to focus its efforts on handling the problems related to Andexxa.
On this news, the Company’s share price fell $2.35, or more than 18%, to close at $10.17 per share on February 27, 2020, thereby injuring investors.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements. Specifically, because of utilization reviews, hospitals and healthcare organizations were curtailing usage of Andexxa in order to make more efficient use of their budgets, and certain distributors were cutting back on orders of Andexxa as they were awash with inventory of Andexxa. Because Portola recognized revenue when the product was shipped to the hospital, including the initial stocking before utilization, investors could not properly estimate rates of utilization at current hospitals. Moreover, Portola had not established adequate reserves for returned inventory based on estimates of demand compared to shelf life. As a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased Portola securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, 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 protected], or visit our website at www.howardsmithlaw.com.
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