According to the law firm press release, Marrone makes bio-based pest management and plant health products. Bio-based products are comprised of naturally occurring microorganisms, such as bacteria and fungi, and plant extracts. The Company targets the major markets that use conventional chemical pesticides, including certain agricultural and water markets, where the bio-based products are used as substitutes for, or in connection with, conventional chemical pesticides. Marrone also targets new markets for which there are no available conventional chemical pesticides, the use of conventional chemical products may not be desirable or permissible because of health and environmental concerns or the development of pest resistance has reduced the efficacy of conventional chemical pesticides.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Marrone's financial statements contained errors related to the improper recognition of revenues; (2) the Company lacked adequate internal controls over financial reporting; and (3) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On September 3, 2014, the Company filed a Form 8-K with the SEC, announcing, among other things, that some of its previously issued financial statements should no longer be relied upon as being in compliance with generally accepted accounting principles.
On this news, the Company's shares fell $2.50, or over 44%, to close at $3.15 on September 3, 2014.
On February 13, 2015, the Court issued an Order appointing lead plaintiffs and approving lead counsel. The Court also ordered the consolidation of related cases. This action was consolidated into lead action 2:14-cv-02571.
A consolidated complaint was filed on September 1, 2015. This was followed by the filing of a second amended complaint on January 11, 2016. A third amended complaint was filed on June 1.
On June 16, 2016, a Settlement between all parties excluding the auditor defendant was filed. This Settlement was preliminarily approved on July 8. On September 27, Final Judgment was entered as to the Settling parties.