According to a notice of removal dated November 23, 2011, the plaintiffs charge the defendants with violations of the federal securities laws in connection with allegedly false and misleading statements.
Specificilly, the complaint alleges that the Company and certain of its officers released misleading statements concerning the company’s development of a technology that would rapidly read DNA sequences. Officers of the Company told Bloomberg that its technology would run sequences 30,000 times faster than its competitor’s methods. The Company continued to release positive statements about the development of its technologies in various biomedical trade journals.
On October 26, 2010, the Company raised $210 million in its IPO. At the time of the offering, the plaintiffs charge that Company had never reported any revenues, and
while the 2010 limited distribution" users had no financial obligation to purchase the RS systems they were trying out, according to the registration statement filed with the SEC to conduct the IPO, the Company then expected to begin its wider public commercial release in early 2011, and the Company then reported a $15 million sales backlog.
On March 13, 2012, an order remanding this case back to San Mateo County Superior Court was issued by the Court, thereby dismissing the case.