The original complaint charges Inverness Medical and certain of its officers and directors with violations of the Securities Act. Inverness Medical engages in the development, manufacture, and marketing of consumer and professional medical diagnostic products, as well as a range of vitamins and nutritional supplements worldwide.
Specifically the complaint alleges that on or about November 14, 2007, the Prospectus supplement to the Registration Statement (the "Registration Statement") with respect to the Secondary Offering, which forms part of the Registration Statement, became effective and more than 12 million shares of Inverness Medical common stock were sold to the public at $61.49 per share, thereby raising more than $737 million. The complaint alleges that the Registration Statement negligently failed to disclose the significant and severe integration issues that Inverness Medical was then experiencing and which were then impacting the Company's continuing operations.
On October 2, 2008, Judge Joseph L. Tauro allowed the plaintiff’s motion to appoint lead plaintiff and lead and liaison counsel. Institutional Investor International Brotherhood of Electrical Workers Local 98 is appointed Lead Plaintiff and Coughlin Stoia Geller Rudman & Robbins LLP as Lead Counsel and Shapiro Haber & Urmy LLP to serve as Liaison Counsel. On December 4, 2008, the lead plaintiff filed an Amended Class Action Complaint. On February 12, 2009, the defendants filed a motion to dismiss the Amended Class Action Complaint. On July 29, 2009, Judge Joseph L. Tauro entered the Memorandum and Order allowing the defendants’ motion to dismiss.
On August 27, 2009, the plaintiff filed a Notice of Appeal. On September 24, 2009, the Court entered the Judgment and Mandate from the U.S. Court of Appeals for the First Circuit. The parties voluntarily dismissed the appeal.