February 21, 2019 - An investor in shares of Akorn, Inc. (NASDAQ: AKRX) filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged violations of Federal Securities Laws by Akorn, Inc. in connection with certain allegedly false and misleading statements made between August 1, 2018 and January 8, 2019.

Lake Forest, IL based Akorn, Inc., a specialty generic pharmaceutical company, develops, manufactures, and markets generic and branded prescription pharmaceuticals, over-the-counter (OTC) consumer health products, and animal health pharmaceuticals in the United States and internationally. Akorn, Inc. reported that its annual Total Revenue declined from over $1.16 billion in 2016 to $841.04 million in 2017 and that its Net Income of $184.24 million in 2016 turned to a Net Loss of $24.55 million in 2017.

On January 9, 2019, Akorn, Inc. disclosed that it had received a warning letter from the U.S. Food and Drug Administration following an inspection of Akorn’s Decatur, Illinois manufacturing facility. This inspection revealed that contrary to Akorn’s representations to shareholders, Akorn had failed to comply with multiple federal regulations pertaining to drug manufacturing.

Shares of Akorn, Inc. (NASDAQ: AKRX) closed on February 7, 2019 at $4.31 per share.

According to the complaint the plaintiff alleges on behalf of purchasers of Akorn, Inc. (NASDAQ: AKRX) common shares between August 1, 2018 and January 8, 2019, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between August 1, 2018 and January 8, 2019, the defendants made false and/or misleading statements and/or failed to disclose that Akorn’s management misled investors concerning the severity of Akorn’s manufacturing violations at its Decatur, Illinois facility, that Akorn’s responses to the Food and Drug Administration’s (“FDA”) Form 483—which contained a list of observations made by the FDA during its inspection of Akorn’s Decatur, Illinois facility in April and May 2018—would be deemed inadequate by the FDA, that Akorn repeatedly failed to correct manufacturing violations at this facility, that the foregoing would subject Akorn to heightened regulatory scrutiny by the FDA, and that as a result, Akorn’s public statements were materially false and misleading at all relevant times