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Case Status:    SETTLED
On or around 03/24/2017 (Date of stipulation and/or agreement of settlement)

Filing Date: November 07, 2014

According to the law firm press release, Salix focuses on treatments for digestive system diseases and disorders, including its top-selling antibiotic drug XIFAXAN® (rifaximin) (Xifaxan). Salix primarily sells its drugs through wholesalers, which then sell Salix's drugs to pharmacies.

The complaint claims that Salix and certain executives misled investors about deteriorating demand for Xifaxan and other Salix drugs and about wholesale inventory levels of Salix drugs, which were both much greater and increasing more rapidly than previously claimed. The complaint also claims that, by understating wholesale inventory levels, which are used to estimate accounting allowances for, among other things, product returns and rebates, Salix overstated its reported net revenue and earnings per share.

The truth about demand for Xifaxan and other Salix drugs and the consequences for Salix's business were revealed on November 6 and 7, 2014, when Salix announced that: (1) its longstanding Chief Financial Officer had abruptly resigned; (2) its wholesaler inventory levels were three times greater than previously reported, and its audit committee had retained outside counsel to look into Salix's reporting of wholesaler inventory; and (3) its previously issued revenue guidance for all of 2014 would be reduced by 12.5 percent. In reaction to these disclosures, Salix's stock price fell nearly 34 percent, to close at $91.47 per share on extraordinary trading volume.

On March 23, 2015, the Court issued an Order appointing lead plaintiff and approving lead counsel. Lead Plaintiff filed a consolidated complaint on May 8.

On March 31, 2016, the Court issued an Order denying Defendants' Motions to Dismiss.

The parties entered into a Stipulation of Settlement on March 24, 2017.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Biotechnology & Drugs
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SLXP
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 14-CV-08925
JUDGE: Hon. Kimba M. Wood
DATE FILED: 11/07/2014
CLASS PERIOD START: 11/08/2013
CLASS PERIOD END: 11/06/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 14-CV-08925
JUDGE: Hon. Kimba M. Wood
DATE FILED: 05/08/2015
CLASS PERIOD START: 11/08/2013
CLASS PERIOD END: 11/06/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date