Lawsuit Overview
June 5, 2015 - The U.S. Court of Appeals for the Ninth Circuit affirmed the District Courts decision.
April 17, 2013 - The lead plaintiff filed a notice of appeal.
March 28, 2013 - The court granted the defendants' motions to dismiss and ordered the case dismissed with prejudice.
May 3, 2012 - Defendants filed a motion to dismiss.
April 19, 2012 - The lead plaintiff filed a third amended complaint.
March 22, 2012 - The court granted the defendants' motions to dismiss and granted plaintiff leave to file an amended complaint.
April 18, 2011 - Defendants filed motions to dismiss.
February 22, 2011 - The lead plaintiff filed a second amended complaint.
February 17, 2011 - The lead plaintiff filed an amended complaint on behalf of investors who purchased ATEC common shares between April 16, 2010 and August 5, 2010. The lead plaintiff alleges that the defendants violated the Securities Act of 1933 by issuing false and misleading statements between April 16, 2010 and August 5, 2010.
January 19, 2011 - The lead plaintiff and lead counsel were appointed.
October 12, 2010 - A lead plaintiff motion was filed.
August 11, 2010 - An investor in shares of Alphatec Holdings Inc (NASDAQ: ATEC) filed a lawsuit in the U.S. District Court for the Southern District of California against Alphatec Holdings Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between December 18, 2009 and August 5, 2010.
According to the complaint the plaintiff charges Alphatec Holdings Inc and certain of its officers and directors with violations of the Securities Act of 1933. The complaint alleges that on December 17, 2009, Alphatec Holdings Inc announced that it was going to acquire Scient'x, SA from HealthPointCapital Partners LP and HealthPointCapital Partners II LP, which then owned 38% of Alphatec Holdings Inc’s (NASDAQ: ATEC) shares, in an all stock transaction. With respect to the proposed transaction, Alphatec Holdings Inc announced that it expected 2010 pro forma full-year revenue of $220 million to $225 million, and adjusted EBITDA of $32 million to $35 million (the Aggressive Projection ). On this news, so the lawsuit, Alphatec Holdings Inc shares (NASDAQ: ATEC) rose 8%. ATEC reiterated the Aggressive Projection on February 23, 2010, April 12, 2010 and May 10, 2010. As further alleged in the Complaint, these statements were made to increase interest in ATEC's stock, so that Alphatec Holdings Inc and HealthPointCapital could sell off a significant number of their Alphatec Holdings Inc shares (NASDAQ: ATEC) at the highest price possible in an upcoming offering.
On April 12, 2010, Alphatec Holdings Inc announced Alphatec Holdings Inc (NASDAQ: ATEC) and HealthPointCapital will sell 16 million shares of common stock at $5 per share in a public offering. The offering closed on April 21, 2010 and, with over-allotments, Alphatec Holdings Inc and HealthPointCapital each sold 9.2 million shares, for $46 million in gross proceeds.
Before the offering, Alphatec Holdings Inc (NASDAQ: ATEC) shares traded at roughly $4-5 per share, but increased after the offering to its 52 week High. Shares of Alphatec Holdings Inc (NASDAQ: ATEC) traded as high as $7.32 per share in April 2010. While Alphatec Holdings Inc’s revenue increased over the past four years from $74 million in 2006, to $80.03 million in 2007, to $101.31 million in 2008, and to $132.16 million in 2009, Alphatec Holdings Inc had to report a Net Loss in the past four years. Alphatec Holdings Inc reported a Net Loss of $25.82 million in 2006, $20.20 million Net Loss in 2007, $29.29 million Net Loss in 2008, and a Net loss in 2009 of $13.29 million.
Then On August 5 2010, after the close of trading, Alphatec Holdings Inc reported its financial results for the quarter ended June 30, 2010. Among other things, Alphatec Holdings Inc reported a loss of $0.04 per share, while analysts reportedly expect Alphatec Holdings Inc to report a profit. Further, Alphatec Holdings Inc revised its revenue forecast for 2010. Alphatec Holdings Inc now expects to report $177 million to $182 million in revenue this year, down from a prior forecast of $208 million to $213 million. The new outlook is well below analysts’ average forecast of $206.9 million.
Following the announcement on August 6, 2010, Alphatec Holdings Inc (NASDAQ: ATEC) shares declined to a 52-week low or approximately $2.03 per share, a decline of approximately 46%. Shares of Alphatec Holdings Inc (NASDAQ: ATEC) declined from $4.42 per share on August 5, 2010 to as low as $2.39 per share on Friday, August 06, 2010.
Alphatec Holdings Inc, located in Carlsbad, California, is a medical technology company focused on the design, development, manufacturing and marketing of products for the surgical treatment of spine disorders.