According to the law firm press release, the complaint filed in this lawsuit 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: (1) that the Company improperly recognized and reported revenue in violation of Generally Accepted Accounting Principles (“GAAP”); (2) that, as a result, the Company’s quarterly and annual SEC filings would be delayed; (3) that, as a result of the foregoing, the Company’s planned merger with Abbott Laboratories would be thrown into doubt; (4) that the Company lacked adequate internal controls over accounting and financial reporting; and (5) that, as a result of the foregoing, the Company’s financial statements, as well as Defendants’ statements about Alere’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis. On or around March 15, 2016, the Company announced that it would delay the filing of its 2015 Annual Report, and would need to restate the financial reports for the years 2013, 2014 and 2015 due to issues with its revenue recognition practices, and had also received a subpoena from the U.S. Department of Justice relating the Company’s sales practices and compliance with the U.S. Foreign Corrupt Practices Act. After these disclosures, the Company’s formerly announced acquisition by Abbott Laboratories might be jeopardized, and the Company’s shares have declined significantly in value.
On July 12, 2016, the court issued an Order appointing Lead Plaintiff and Counsel. A consolidated Complaint was filed on September 23.
An amended version of the consolidated Complaint was filed on January 4, 2017. On August 23, 2017, the Court issued an Order granting in part and denying in part Defendants' motion to dismiss. On December 22, the Court issued an Order adding Co-Lead Plaintiff and Co-Lead Counsel.
On January 31, 2019, the parties entered into a Stipulation and Agreement of Settlement. The Court issued an Order preliminarily approving the Settlement on February 26. On June 6, the Court granted final approval of the Settlement and entered Final Judgment. On June 22, 2020, the Court issued an Order approving the Settlement's Distribution Plan.