According to the law firm press release, Retrophin, Inc., a biopharmaceutical company, focuses on the development, acquisition, and commercialization of therapies for the treatment of serious, catastrophic, or rare diseases. It sells Chenodal, a synthetic oral form of chenodeoxycholic acid for the treatment of radiolucent stones in well-opacifying gallbladders, and Vecamyl, for the treatment of hypertension.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Retrophin's founder and Chief Executive Officer was committing stock-trading irregularities and other violations of the Company's Incentive Compensation Plan and other securities rules; (ii) said irregularities included grants of shares in violation of the Company's Incentive Compensation Plan and the failure to disclose stock grants to employees; and (iii) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On September 16, 2014, after the close of trading, the Company issued a press release and filed a Form 8-K with the SEC announcing that on September 15, 2014, it had reached an agreement with its Chief Financial Officer, pursuant to which the CFO's employment with the Company will terminate, effective as of February 28, 2015. Also, the Company announced that on September 10, 2014, a member of the Board of Directors abruptly stepped down. As a result of this news, shares of Retrophin fell $1.03 or over 8%, on unusually heavy trading, to close at $11.46 on September 17, 2014.
On September 30, 2014, after the close of trading, the Company issued a press release announcing that its Board of Directors terminated its Chief Executive Officer effective immediately, and appointed an interim Chief Executive Officer. As a result of this news, shares of Retrophin fell $0.40 or almost 4.5%, on unusually heavy trading, to close at $8.62 on October 1, 2014.
The parties entered a Stipulation of Settlement on January 29, 2016. The Settlement was preliminarily approved by the Court on February 2.