According to the Complaint, Aceto is an international company engaged in the development, marketing, sales and distribution of finished dosage form generic pharmaceuticals, nutraceutical products, pharmaceutical active ingredients and intermediates, specialty performance chemicals inclusive of agricultural intermediates and agricultural protection products.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that (i) the Company failed to implement and enforce proper internal control to identify the misapplication of cash; (ii) the Company would incur large non-cash intangible asset impairment charges; (iii) the Company lacked effective internal control over financial reporting; (iv) the Company’s financial results for the fiscal year 2017 could not be relied upon; (v) the Company’s fiscal 2018 financial guidance was overstated; and (vi) as a result of the foregoing, Aceto’s public statements were materially false and misleading at all relevant times.
On November 29, 2018, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. The consolidated cases shall be captioned "In re Aceto Corporation Securities Litigation." Lead Plaintiff filed a consolidated amended Complaint on January 28, 2019.
On February 27, 2019, Defendant Aceto Corporation filed a Suggestion of Bankruptcy. On April 1, the remaining individual Defendants filed a Motion to Dismiss the consolidated amended Complaint. On August 6, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. On August 27, Lead Plaintiff filed a consolidated second amended Complaint. The issuer Defendant, Aceto, was dropped from the consolidated second amended Complaint due to bankruptcy proceedings. On August 3, 2020, the Court issued an Order dismissing the remaining individual Defendants and dismissed the case with prejudice.